My company sells household cleaning products. The research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 18 quarts of triphate solution and 8 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 4 ounces of methage are added. This recipe produces 15 quarts of the cleaner, which is then packaged in one-quart plastic dispenser bottles. The raw materials costs are:
- Triphate solution $0.45 per quart
- Sobase granules $0.90 per pound
- Methage $1.40 per ounce
- Bottle $0.25 each