Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards: Standard Quantity Standard

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 4,000 lbs. $ 0.45 per lb.
Vinegar 220 gal. 2.7 per gal.
Corn syrup 19 gal. 10 per gal.
Salt 88 lbs. 2.5 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:

4,200 lbs. of tomatoes
211 gal. of vinegar
20 gal. of corn syrup
87 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
Vinegar $fill in the blank
Corn syrup $fill in the blank
Salt $fill in the blank
Total $fill in the blank
Standard unit materials cost per pound $fill in the blank

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 $fill in the blank

Vinegar $fill in the blank

Corn syrup $fill in the blank

Salt $fill in the blank

Total direct materials quantity variance $fill in the blank

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

Step: 3

blur-text-image

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: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

7th Canadian Edition

133138445, 978-0133926330, 133926338, 978-0133138443

More Books

Students also viewed these Accounting questions

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago

Question

All of the following are payroll liabilities except

Answered: 1 week ago

Question

Where did we miss opportunities?

Answered: 1 week ago

Question

How did we manage the project implementation?

Answered: 1 week ago

Question

How did we design the project information?

Answered: 1 week ago