czar nicholas chocolatier ltd makes premium handcrafted choc 372676

Czar Nicholas Chocolatier, Ltd. , makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the company’s products, the Imperial Truffle. This product is made with the fi nest white chocolate and various fillings. The data below pertain only to the white chocolate used in the product. (The currency in the United Kingdom is the pound, which is denoted by ?L.):

Material requirements, kilograms of white chocolate per dozen truffles . . . . . . 0.80 kilograms

Allowance for waste, kilograms of white chocolate per dozen truffles. . . . . . . . 0.02 kilograms

Allowance for rejects, kilograms of white chocolate per dozen truffles . . . . . . . 0.03 kilograms

Purchase price, fi nest grade white chocolate . . . . . . . . . . . . . . . . . . . . . . . . ?L9.00 per kilogram

Purchase discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% of purchase price

Shipping cost from the supplier in Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . ?L0.20 per kilogram

Receiving and handling cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?L0.05 per kilogram

Required:

1. Determine the standard price of a kilogram of white chocolate.

2. Determine the standard quantity of white chocolate for a dozen truffles.

3. Determine the standard cost of the white chocolate in a dozen truffles.