Management accounting

Danson Company is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap: a. Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 10.80 litres of salex and 14.40 kilograms of nyclyn per 10-liter batch of Nysap. b. After the boiling process is complete, the solution is cooled slightly before 6.00 kilograms of protet are added per 10-liter batch of Nysap. The addition of the protet does not affect the total liquid volume. The resulting solution is then bottled in 10- liter containers. c. The finished product is highly unstable, and one 10-liter batch out of six is rejected at final inspection. Rejected batches have no commercial value and are thrown out. d. It takes a worker 42 minutes to process one 20-litre batch of Nysap. Employees work an eight-hour day, including one hour per day for rest breaks and cleanup. REQUIRED: 1 Determine the standard quantity for each of the raw materials needed to produce an acceptable 10-liter batch of Nysap. (6 points) 2 Determine the standard labor time to produce an acceptable 10-liter batch of Nysap. (2 points)