Danny's Delights Is a Wholesale Bakery

question 126

Essay

Danny's Delights is a wholesale bakery.Danny makes a variety of baked goods which he sells to restaurants and grocery stores.His best-selling item is a peanut butter cookie.The recipe calls for 1 cup of peanut butter,1 cup of sugar and 1 egg.Each recipe makes a batch of one dozen cookies.Danny's standard direct materials cost for batch of cookies is $0.90 for peanut butter,$0.15 for sugar and $0.10 for an egg.In addition,the cookies are packaged by the dozen in cardboard containers costing $0.25 each.One batch of cookies requires 4 minutes preparation time,8 minutes of cooking time,and 3 minutes of packaging time.The standard wage rate is $8 per hour.Overhead is applied at 50% of direct labor cost.

Required:

Calculate the standard cost for a batch 1 dozen of peanut butter cookies.

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Definitions:

Product Positioning

The strategic process of establishing a brand or product in the market to differentiate it from competitors, targeting specific consumer preferences.

Ready-To-Eat Meals

Pre-cooked or prepared meals that require little to no additional preparation before consumption, designed for convenience and time-saving.

Working Professionals

Individuals who are employed in a job that requires expertise and skills related to a specific area of work.

Differentiated Marketing Mix

A marketing strategy where a company markets its products or services using different combinations of the four Ps (Product, Price, Place, Promotion) to target specific customer segments.