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Question - 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 15 quarts of triphate solution and 6 pounds of sobase granules and boiling the mixture for several minutes. After the solution has been cooled, 3 ounces of methage are added. This recipe produces 12 quarts of the cleaner, which is then packaged in 1- quart plastic dispenser bottles. Raw material costs are as follows.
Triphate solution: $ 0.40 per quart
Sobase granules: $ 0.86 per pound
Methage: $1.30 per ounce
Bottle: $0.18 each
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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