Question

1. Pane Corp. manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The following are required for production of one gallon: Ingredient Lime Kool-Drink Sugar Protein Tablets Water Amount per Gallon 24.0 oz. .72 lb. 2 50 oz. Standard Waste 4% 10% 0% 0% Standard Price $0.15 per oz $0.65 per lb $0.40 per tablet $0.01 per oz Compute the standard usage (quantity) and standard cost of the ingredients for one gallon of the nutrition drink.

Answer 1

Standard cost = $5.57

Step-by-step explanation:

As per the data given in the question,

Standard cost = Standard usage * standard price

Ingredient Amount/gallon st. waste St. usage St. price St. cost

Lime 24.0 Oz 4% .96X=24.0 Oz=25 Oz 0.15 $3.75 kool-drink

Sugar .72 lb 10% .90X=.72 lb = 0.8 lb $0.65 $0.52

Protein tablets 2 0% 2 $0.40 $0.80

Water 50 Oz 0% 50 Oz $0.01 $0.50

Total $5.57

Total standard cost = $3.75 + $0.52 + $0.80 + $0.50

= $5.57