Question
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,400 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 (1,400 pounds) has the following standards:
Standard Quantity Standard Price
Whole tomatoes 2,300 lbs. $ 0.35 per lb.
Vinegar 130 gal. 2.1 per gal.
Corn syrup 11 gal. 7.8 per gal.
Salt 52 lbs. 1.9 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:
2,400 lbs. of tomatoes
125 gal. of vinegar
12 gal. of corn syrup
51 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
Whole tomatoes $?
Vinegar $?
Corn syrup $?
Salt $?
Total direct materials quantity variance $?
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