| [The following information applies to the questions displayed below.] |
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Danson Company is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap: |
| a. |
Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 16.6 liters of salex and 11 kilograms of nyclyn per 17 liter batch of Nysap. |
| b. |
After the boiling process is complete, the solution is cooled slightly before 7 kilograms of protet are added per 17 liter batch of Nysap. The addition of the protet does not affect the total liquid volume. The resulting solution is then bottled in 17 liter containers. |
| c. |
The finished product is highly unstable, and one 17 liter batch out of 5 is rejected at final inspection. Rejected batches have no commercial value and are thrown out. |
| d. | It takes a worker 30 minutes to process one 17 liter batch of Nysap. Employees work an 8 hour day, including 1 hour per day for rest breaks, and cleanup. |
rev: 02 10 2011
1. value:
1.00 points
| Requirement 1: |
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Determine the standard quantity for each of the raw materials needed to produce an acceptable 17 liter batch of Nysap. (Round the interim calculation to 2 decimal places and final answers rounded to 1 decimal place.) |
| Standard quantity | |
| Salex | liters |
| Nyclyn | kilograms |
| Protet | kilograms |
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rev: 02 10 2011 ask your instructor a questioncheck my workeBook Linkreferences
2. value:
1.00 points
| Requirement 2: |
| Determine the standard labor time allowed to produce an acceptable 17 liter batch of Nysap. (Round your answer to 2 decimal places.) |
| Standard labor time | minutes |
rev: 02 10 2011 ask your instructor a questioncheck my workeBook Linkreferences
3. value:
1.00 points
| Requirement 3: |
| Assuming the following costs, prepare a standard cost card for direct materials and direct labor for one acceptable 17 liter batch of Nysap: |
| Salex | $3.5 per liter |
| Nyclyn | $2 per kilogram |
| Protet | $2 per kilogram |
| Direct labor cost | $12 per hour |
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| Prepare a standard cost card for direct materials and direct labor for one acceptable 17 liter batch of Nysap.(Round your answers to 2 decimal places. Omit the “$” sign in your response.) |
| Standard Quantity or Time |
Standard Price or Rate | Standard Cost |
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| Salex | liters | $ per liter | $ | |
| Nyclyn | kilograms | $ per kilogram | ||
| Protet | kilograms | $ per kilogram | ||
| Labor time | minutes | $ per hour | ||
| Total standard cost per acceptable batch |
$ |
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