Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 pounds) has the following standards:
Standard Quantity Standard Price Whole tomatoes 2,500 lbs. $ 0.44 per lb. Vinegar 140 gal. $ 2.70 per gal. Corn syrup 12 gal. $ 9.80 per gal. Salt 56 lbs. $ 2.40 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:
2,600 lbs. of tomatoes 134 gal. of vinegar 13 gal. of corn syrup 55 lbs. of salt
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.
Whole tomatoes $
Corn syrup $
Total direct materials quantity variance $