H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (3,128 pounds) has the following standards:
Standard Quantity Standard Price
Whole tomatoes....................4,000 lb............................$ 0.60 per lb.
Vinegar...............................260 gal.............................2.25 per gal.
Corn syrup............................25 gal............................28.00 per gal.
Salt......................................100 lb..............................2.25 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:
4,250 lb. of tomatoes
275 gal. of vinegar
22 gal. of corn syrup
90 lb. of salt
a. Determine the standard unit materials cost per pound for a standard batch.
b. Determine the direct materials quantity variance for batch K-111. Round your answer to the nearest cent.