NorthCo manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw

material called Echol. Information concerning the purchase and use of Echol follows:

Purchase of Echol. Echol is purchased in $20-$quart containers at a cost of $$50$ per container. A

discount of $5\%$ is offered by the supplier for payment within $10$ days, and NorthCo takes all

discounts. Shipping costs, which NorthCo must pay, amount to $$450$ for an average shipment of

$10020-$quart containers of Echol.

Use of Echol. The bill of materials calls for $13\mathrm{.}95$ quarts of Echol per bottle of cleaning solvent.

About $7\%$ of all Echol used is lost through spillage or evaporation $($the $13\mathrm{.}95$ quarts above is the

actual content per bottle$).$ In addition, statistical analysis has shown that every $31$st bottle is

rejected at final inspection because of contamination.

Please make sure your final answer$($s$)$ are accurate to $2$ decimal places.

a$)$ Compute the standard purchase price for one quart of Echol.

Standard purchase price $=$$

b$)$ Compute the standard quantity of Echol $($in quarts$)$ per salable bottle of cleaning solvent.quart per salable bottlec$)$ Using the data from a$)$ and b$)$ above, prepare a standard cost card showing the standard cost of

Echol per bottle of cleaning solvent.