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 a 100 gallon batch: 1,960 ounces of lime Kool-Drink at $.12 per ounce 40 pounds of granulated sugar at $.60 per pound 63 kiwi fruit at $.50 each 100 protein tablets at $.90 each 4,000 ounces of water at $.003 per ounce
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 a 100 gallon batch: 1,960 ounces of lime Kool-Drink at $.12 per ounce 40 pounds of granulated sugar at $.60 per pound 63 kiwi fruit at $.50 each 100 protein tablets at $.90 each 4,000 ounces of water at $.003 per ounce
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
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Chapter11: Strategic Cost Management
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Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...
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![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 a 100 gallon batch:
1,960 ounces of lime Kool-Drink at $.12 per ounce
40 pounds of granulated sugar at $.60 per pound
63 kiwi fruit at $.50 each
100 protein tablets at $.90 each
4,000 ounces of water at $.003 per ounce
Pane estimates that 2% of the lime Kool-Drink is wasted, 20% of the sugar is lost, and 10% of the kiwis cannot be used.
Compute the standard cost of the ingredients for one gallon of the nutrition drink. (Round answer to 2 decimal places, e.g. 52.75.)
Standard Cost per Gallon $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3767972f-3214-400b-8b16-9d53654b165b%2F318a9965-d173-403a-b854-d885ca160577%2Fesf5b3u_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 a 100 gallon batch:
1,960 ounces of lime Kool-Drink at $.12 per ounce
40 pounds of granulated sugar at $.60 per pound
63 kiwi fruit at $.50 each
100 protein tablets at $.90 each
4,000 ounces of water at $.003 per ounce
Pane estimates that 2% of the lime Kool-Drink is wasted, 20% of the sugar is lost, and 10% of the kiwis cannot be used.
Compute the standard cost of the ingredients for one gallon of the nutrition drink. (Round answer to 2 decimal places, e.g. 52.75.)
Standard Cost per Gallon $
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