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H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards: Ingredient Standard Quantity

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards:

Ingredient Standard Quantity Standard Price
Whole tomatoes 2,800 lbs. $0.35 per lb.
Vinegar 160 gal. 2.10 per gal.
Corn syrup 14 gal. 7.80 per gal.
Salt 64 lbs. 1.90 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:

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 $fill in the blank 1
Vinegar fill in the blank 2
Corn syrup fill in the blank 3
Salt fill in the blank 4
Total $fill in the blank 5
Standard unit materials cost per pound $fill in the blank 6

b. Determine the direct materials quantity variance for batch 08-99. 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 $fill in the blank 7 FavorableUnfavorable
Vinegar fill in the blank 9 FavorableUnfavorable
Corn syrup fill in the blank 11 FavorableUnfavorable
Salt fill in the blank 13 FavorableUnfavorable
Total direct materials quantity variance $fill in the blank 15

FavorableUnfavorable

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