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 (1,410 bars) are as follows: Ingredient Quantity Price Cocoa 510 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.50 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $ per bar

The direct material cost per bar is $0.30

Explanation:

Using the batch costs available to us relating to Direct Material, we first need to calculate the per unit cost of each component of direct material.

Per unit cost of each component

Cocoa - Total cost per batch = 510 * 0.3 = $153

Cocoa - Cost per unit  = 153 / 1410  =  $0.1085 per unit

Sugar - Total cost per batch = 150 * 0.6 = $90

Sugar - Cost per unit = $0.0638 per unit

Milk - Total cost per batch = 120 * 1.5 = $180

Milk - Cost per unit = 180 / 1410  =  $0.1277 per unit

Direct material cost per bar = 0.1085 + 0.0638 + 0.1277  =  $0.30 per bar

the correct answer is:

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