Standard Direct Materials Cost per Unit
Geneva Chocolate 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 (5,000 bars) are as follows:
- Cocoa: Qty: 510lb Price: $.70/lb
- Sugar: Qty: 150lb Price: $1.18/lb
- Milk: Qty: 120gal Price: $1.80/gal
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.