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Question 10.11: Squaretree Ltd’s Choc-o-crunch production line has three pro...

Squaretree Ltd’s Choc-o-crunch production line has three processes: baking, chocolate
covering and wrapping. In June, 500,000 Choc-o-crunches were produced. Details of
each process’s costs for that month are as follows:

Baking Chocolate covering £ Wrapping £
Direct materials 20,000 16,000 8,000
Direct labour 4,500 5,180 1,600
Production overhead 2,500 2,620 2,600
Abnormal loss – 3,000 –

Calculate the cost of one Choc-o-crunch.

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