Question

Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs.

Assume that a batch of ketchup (1,900 pounds) has the following standards:

  Standard Quantity Standard Price Whole tomatoes 3,200 lbs. $ 0.50 per lb. Vinegar 180 gal. $ 3.10 per gal. Corn syrup 15 gal. $ 11.10 per gal. Salt 72 lbs. $ 2.80 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-111 were as follows:

3,300 lbs. of tomatoes 173 gal. of vinegar 16 gal. of corn syrup 71 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

Ingredient Standard Cost per Batch Whole tomatoes $ Vinegar $ Corn syrup $ Salt $ Total $ Standard unit materials cost per pound $ b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Ingredient Materials Quantity Variance Favorable/Unfavorable Whole tomatoes $   Vinegar $ Corn syrup $   Salt $   Total direct materials quantity variance $

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