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Choco La Ti-Da 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 (4,500 bars) are as follows:
Ingredient Quantity Price
Cocoa 510Ibs. $1.50 per pound
Sugar 160Ibs. $.50 per pound
Milk 100 gal $3.25 per gallon
Determine the standard direct materials cost per bar of chocolate.
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