Question
The following information applies to the questions displayed below.] Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a
The following information applies to the questions displayed below.] 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 13 quarts of triphate solution and 4 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 2 ounces of methage are added. This "recipe" produces 5 quarts of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw material costs are as follows:
Triphate solution | $ | 0.42 | per quart |
Sobase granules | 0.93 | per pound | |
Methage | 1.23 | per ounce | |
Bottle | 0.08 | 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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