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tia_tia [17]
2 years ago
6

Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing ch

ocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (8,100 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.40 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar
Business
1 answer:
adoni [48]2 years ago
5 0

Answer: $0.06

Explanation:

The standard direct materials cost per bar of chocolate will be:

Cocoa:

Quantity = 480 lbs.

Price = $0.40 per lb

Amount = $192

Sugar:

Quantity = 150 lbs.

Price = $0.60 per lb

Amount = $90

Milk:

Quantity = 120 gal

Price = $1.70 per gal

Amount = $204

Total amount = $192 + $90 + $204 = $486

Since there are 8100 bars of chocolate, the cost per bar will be:

= $486 / 8100

= $0.06

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Answer: Reduce output

Explanation:

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 For maximizing the profit of an organization then we should reduce the output as in the perfect competition the company majorly affected the output only and for shift the overall marginal cost of the company we reducing the output.

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hram777 [196]

Answer:

Option (B) is correct.

Explanation:

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