Sweet Swiss Chocolate Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,000 bars) are as follows:
|
Ingredient |
Quantity |
Price |
|
Cocoa |
465 pounds |
$0.30 per pound |
|
Sugar |
168 pounds |
$0.50 per pound |
|
Milk |
110 gallons |
$1.15 per gallon |
Determine the standard direct materials cost per bar of chocolate.