EXERCISE 10-1 (20 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
1. Cost per 15-gallon container ... $115.00 Less 2% cash discount ... 2.30 Net cost ... 112.70 Add shipping cost per container ($130 ÷ 100) ... 1.30 Total cost per 15-gallon container (a) ... $114.00Number of quarts per container (15 gallons × 4 quarts per gallon) (b) ... 60 Standard cost per quart purchased (a) ÷ (b) ... $1.90