Agrichem manufactures Insect-Be-Gone. Each bag of the product contains 60 pounds of direct materials. Twenty percent of the materials evaporate during manufacturing. The budget allows the direct materials to be purchased at $2.00 per pound (gross cost) under terms of 4/10, n/30. The companys stated policy is to take all available cash discounts.

Required:

Determine the standard direct materials cost for one bag of Insect-Be-Gone. (Do not round intermediate calculations.)