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Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards: Whole tomatoes Vinegar
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards: Whole tomatoes Vinegar Corn syrup Salt Standard Quantity Standard Price 3,800 lbs. $0.40 per lb. 210 gal. 2.40 per gal. 18 gal. 84 lbs. 8.90 per gal. 2.20 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 08-99 were as follows: 4,000 lbs. of tomatoes 202 gal. of vinegar 19 gal. of corn syrup 83 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
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