Lakeway Manufacturing Co. manufactures and sells household cleaning products. Th

Question

Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new dearer for which a standard cost must be determined. The new cleaner Is made by mixing 11 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 10 quarts of the cleaner. which is then packaged in 1-quart plastic dispenser bottles Raw material costs are: Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. (Do not round your intermediate calculations. Round final answer to 3 decimal places.)

Explanation / Answer

Calculation of Cost per Bottle:

Amount($) Triphate Solution 3.30 (11 x 0.30) Sobase Granules 2.96 (0.74 x 4) Methage 2.40 (1.20 x 2) Bottle 0.12 Total Cost per Bottle 8.78

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