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Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 10 quarts of triphate solution and 4 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 3 ounces of methage are added. This "recipe" produces 11 quarts of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw material costs are as follows: Triphate solution Sobase granules Methage Bottle $0.43 per quart 0.74 per pound 1.16 per ounce 0.06 each Required: a. Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. (Do not round intermediate calculations. Round final answer to 3 decimal places.) Cost per bottle
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