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Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup ( 1 , 2 0 0 pounds ) has the
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup pounds has the following standards:
tableStandard Quantity,Standard PriceWhole tomatoes,$ per Vinegargal, per gal.Corn syrup, gal., per gal.Salt 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 were as follows:
of tomatoes
gal. of vinegar
gal. of corn syrup
lbs of salt
a Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
Standard Cost
Ingredient
per Batch
Whole tomatoes
$
Vinegar
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