Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,800 pounds) has the following standards: Standard Quantity Standard Price

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,800 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 3,000 lbs. $ 0.47 per lb.
Vinegar 170 gal. $ 2.90 per gal.
Corn syrup 15 gal. $ 10.40 per gal.
Salt 68 lbs. $ 2.60 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:

3,100 lbs. of tomatoes
163 gal. of vinegar
16 gal. of corn syrup
67 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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T Horngren

6th Edition

0131795082, 978-0131795082

More Books

Students also viewed these Accounting questions