# Question: Hank Itzek manufactures and sells homemade wine and he wants

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.

Instructions

Compute the standard cost of the ingredients for one gallon of wine. (Carry computations to two decimal places.)

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.

Instructions

Compute the standard cost of the ingredients for one gallon of wine. (Carry computations to two decimal places.)

**View Solution:**## Answer to relevant Questions

Kimm Company has gathered the following information about its product. Direct materials. Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 ...The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.Instructions(a) Compute the total, price, and quantity variances for materials and labor.(b) Provide ...Burte Corporation prepared the following variance report.InstructionsFill in the appropriate amounts or letters for the question marks in thereport.Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materialsâ€”1 pound plastic at $7.00 per pound .....$ 7.00Direct laborâ€”1.6 hours at $12.00 per hour ...Using the information in P11-5A, compute the overhead controllable variance and the overhead volume variance.Post your question