Answer:
Hence,
1. $2.5
2. 3 pounds
3. $7.5
Explanation:
1. The computation of standard direct material price per gallon is shown below:
=Price-net purchase price + freight-in + receiving and handling
= $2.20 + $0.20 +$0.10
= $2.5
Thus, the standard direct material price per gallon is $2.5
2. The computation of standard direct material quantity per gallon is shown below:
= Quantity required material + Allowance for waste and spoilage
= 2.6 +0.4
= 3 pounds
3. The computation of total standard material cost per gallon is computed below:
= Standard direct materials price per gallon × Standard direct materials quantity per gallon
= $2.5 × 3
= $7.50
Hence,
1. $2.5
2. 3 pounds
3. $7.5
