Standard Direct Materials Cost per Unit
Bavarian Chocolate Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. Thestandard costs for a batch of chocolate (1,360 bars) are as follows:
| Ingredient |
Quantity |
Price |
| Cocoa |
540 |
lbs. |
$0.3 |
per lb. |
| Sugar |
150 |
lbs. |
$0.6 |
per lb. |
| Milk |
120 |
gal. |
$1.3 |
per gal. |
Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.