Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The ownerof the company is setting up a standard cost system and has collected the following data for one ofthe company’s products, the Empire Truffle. This product is made with the finest white chocolate andvarious fillings. The data below pertain only to the white chocolate used in the product (the currency isstated in pounds denoted here as £):Material requirements, kilograms of white chocolate per dozen truffles .... 0.70 kilogramsAllowance for waste, kilograms of white chocolate per dozen truffles ....... 0.03 kilogramsAllowance for rejects, kilograms of white chocolate per dozen truffles ..... 0.02 kilogramsPurchase price, finest grade white chocolate ............................................ £7.50 per kilogramPurchase discount ..................................................................................... 8% of purchase priceShipping cost from the supplier in Belgium ............................................... £0.30 per kilogramReceiving and handling cost ...................................................................... £0.04 per kilogramRequired:1. Determine the standard price of a kilogram of white chocolate.2. Determine the standard quantity of white chocolate for a dozen truffles.3. Determine the standard cost of the white chocolate in a dozen truffles.
Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The owner
of the company is setting up a
the company’s products, the Empire Truffle. This product is made with the finest white chocolate and
various fillings. The data below pertain only to the white chocolate used in the product (the currency is
stated in pounds denoted here as £):
Material requirements, kilograms of white chocolate per dozen truffles .... 0.70 kilograms
Allowance for waste, kilograms of white chocolate per dozen truffles ....... 0.03 kilograms
Allowance for rejects, kilograms of white chocolate per dozen truffles ..... 0.02 kilograms
Purchase price, finest grade white chocolate ............................................ £7.50 per kilogram
Purchase discount ..................................................................................... 8% of purchase price
Shipping cost from the supplier in Belgium ............................................... £0.30 per kilogram
Receiving and handling cost ...................................................................... £0.04 per kilogram
Required:
1. Determine the standard price of a kilogram of white chocolate.
2. Determine the standard quantity of white chocolate for a dozen truffles.
3. Determine the standard cost of the white chocolate in a dozen truffles.
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