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11-55 Aunt Molly’s Old Fashioned Cookies bakes cookies for retail stores. The company’s best-selling cookie is chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly’s normal monthly production of 400,000 pounds, is as follows: Cost Item Quantity Standard unit cost Total Cost Direct materials Cookie mix 10oz $ .02 per oz $ .20 Milk chocolate 5oz .15 per oz .75 Almonds 1oz .50 per oz .50 $ 1.45 Direct Labor Mixing 1 min 14.40 per hr $ .24 Baking 2 min 18.00 per hr .60 $ .84 Variable Overhead 3 min 32.40 per hr $ 1.62 Total Standard cost per pound $ 3.91 Aunt Molly’s management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. April’s contribution report, which compares budgeted and actual performance, is shown in the…