Question
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards: Standard Quantity Standard Price
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards:
Standard Quantity Standard Price
Whole tomatoes 2,800 lbs. $ 0.50 per lb.
Vinegar 160 gal. $ 3.10 per gal.
Corn syrup 14 gal. $ 11.10 per gal.
Salt 64 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:
2,900 lbs. of tomatoes
154 gal. of vinegar
15 gal. of corn syrup
63 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 $ Favorable/Unfavorable
Vinegar $ Favorable/Unfavorable
Corn syrup $ Favorable/Unfavorable
Salt $ Favorable/Unfavorable
Total direct materials quantity variance $ Favorable/Unfavorable
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