Assume that 7 ounces of pecans are included in each bowling ball fruitcake. Because Holiday wants only the best pecans in its fruitcakes, the pecans they buy are inspected and some are discarded as unacceptable for fruitcake production.
The loss rate is expected to be 1 ounce of pecans for every 5 ounces inspected. Under traditional standard costing, how many ounces of pecans should Holiday use as a standard quantity per fruitcake