Tang company accumulates the following data concerning raw materials in making its finished product: (1) price per pound of raw materials—net purchase price $2.50, freight-in $0.30, and receiving and handling $0.20. (2) quantity per gallon of finished product—required materials 3.60 pounds, allowance for waste and spoilage 0.90 pounds.

compute the following.

(round answers to 2 decimal places)

a) standard direct materials price per gallon.
b) standard direct materials quantity per gallon.
c) total standard materials cost per gallon.

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.