Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
| 3,000 ounces of grape concentrate at $0.06 per ounce |
| 54 pounds of granulated sugar at $0.30 per pound |
| 60 lemons at $0.60 each |
| 50 yeast tablets at $0.25 each |
| 50 nutrient tablets at $0.20 each |
| 2,600 ounces of water at $0.005 per ounce |
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)
What is the