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Required information Exercise 14-16 (Algo) Developing raw material cost standards LO 14-8, 14-9 [The following information applies to the questions displayed below] Lakeway Manufacturing Company

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Required information Exercise 14-16 (Algo) Developing raw material cost standards LO 14-8, 14-9 [The following information applies to the questions displayed below] Lakeway Manufacturing Company 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 14 quarts of triphate solution and 2 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 1 ounces of methage are added. This "recipe" produces 8 quarts of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw material costs are as follows: Exercise 14-16 (Algo) Part a Required: a. Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. Note: Do not round intermediate calculations. Round final answer to 3 decimal places. Required information Exercise 14-16 (Algo) Developing raw material cost standards LO 14-8, 14-9 [The following information applies to the questions displayed below] Lakeway Manufacturing Company 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 14 quarts of triphate solution and 2 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 1 ounces of methage are added. This "recipe" produces 8 quarts of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw material costs are as follows: Exercise 14-16 (Algo) Part b b. Assume that the preceding costs are the current best estimates of the costs at which required quantities of the raw material can be purchased. What other factors would you recommend to be considered in establishing the raw material cost standard for the new cleaner? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Decrease in selling price. Possible cost increases during coming year. 2 Spillage / spoilage / waste in the manufacturing process. ( Change in the labor cost

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