Question

H manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 890-gallon batch. 3,400 ounces of grape concentrate at $0.04 per ounce 890 pounds of granulated sugar at $0.50 per pound 1,691 lemons at $0.76 each 3,560 yeast tablets at $0.24 each 3,560 nutrient tablets at $0.11 each 2,500 ounces of water at $0.005 per ounce H estimates that 5% of the grape concentrate is wasted, 15% of the sugar is lost, and 35% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine.

Standard Cost Per Gallon?

Answer 1

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