Berghof Foods manufactures various gourmet ethnic food products. Production of its specialty hummus requires a half pound of material per container, which costs $12 per pound and requires 45 minutes (i.e., 0:75 hour) of direct labor. Direct labor costs $20 per hour; the variable overhead rate is $10 per direct labor hour; and the fixed overhead rate is $6 per direct labor hour. What is the standard cost for each container of specialty hummus produced? Select one: O a. $21.00 per container b. $28.50 per container c. $33.00 per container d. $48.00 per container e. None of the above O O O
Berghof Foods manufactures various gourmet ethnic food products. Production of its specialty hummus requires a half pound of material per container, which costs $12 per pound and requires 45 minutes (i.e., 0:75 hour) of direct labor. Direct labor costs $20 per hour; the variable overhead rate is $10 per direct labor hour; and the fixed overhead rate is $6 per direct labor hour. What is the standard cost for each container of specialty hummus produced? Select one: O a. $21.00 per container b. $28.50 per container c. $33.00 per container d. $48.00 per container e. None of the above O O O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Berghof Foods manufactures various gourmet ethnic food products. Production of its specialty hummus requires a half pound of material per container, which costs $12 per pound and
requires 45 minutes (i.e., 0:75 hour) of direct labor. Direct labor costs $20 per hour; the variable overhead rate is $10 per direct labor hour; and the fixed overhead rate is $6 per direct
labor hour.
What is the standard cost for each container of specialty hummus produced?
Select one:
O
O
O
O
O
a. $21.00 per container
b. $28.50 per container
c. $33.00 per container
d. $48.00 per container
e. None of the above
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