Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,200 pounds) has the following standards: 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: 3,800 lbs. of tomatoes 192 gal. of vinegar 18 gal. of corn syrup 79 lbs. of salt Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The direct material cost variance is the difference between the actual and standard material cost. Remember the process discussed in chapter for calculating standard cost. Learning Objective 2 , Learning Objective 3