Question
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The companys research department has developed a new cleaner for which a standard cost must be
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The companys research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 15 quarts of triphate solution and six pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, three ounces of methage are added. This recipe produces 12 quarts of the cleaner, which is then packaged in one-quart plastic dispenser bottles. Raw material costs are as follows:
Triphate solution | $ | 0.40 | per quart |
Sobase granules | 0.86 | per pound | |
Methage | 1.30 | per ounce | |
Bottle | 0.18 | 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.)
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