Standard Direct Materials Cost per Unit
Roanoke 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 (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400 lbs. $1.25 per lb.
Sugar 80 lbs. $0.40 per lb.
Milk 120 gal. $2.50 per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
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