EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

1. Standard cost for a ten-gallon batch of raspberry sherbet. Direct material: Raspberries (7.5 quarts

1

× $0.80 per quart)... $6.00 Other ingredients (10 gallons × $0.45 per gallon) ... 4.50 $10.50Direct labor: Sorting (18 minutes

2

÷ 60 minutes per hour) × $9.00 per hour... 2.70 Blending (12 minutes ÷ 60 minutes per hour) × $9.00 per hour... 1.80 4.50Packing (40 quarts

3

× $0.38 per quart) ... 15.20Standard cost per ten-gallon batch ... $30.20

1

6 quarts × (5 ÷ 4) = 7.5 quarts required to obtain 6 acceptable quarts.

2

3 minutes per quart × 6 quarts.

3

4 quarts per gallon × 10 gallons = 40 quarts.