Standard Product Cost, Direct Materials Variance

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

	Standard Quantity		Standard Price
Whole tomatoes	2,800	lbs.	$ 0.36	per lb.
Vinegar	160	gal.	$ 2.20	per gal.
Corn syrup	14	gal.	$ 8.00	per gal.
Salt	64	lbs.	$ 2.00	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:

2,900 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	$______________
Vinegar	$______________
Corn syrup	$______________
Salt	$______________
Total	$______________
Standard unit materials cost per pound	$_____________)_

b. Determine the The cost associated with the difference between the standard quantity and the actual quantity of direct materials used in producing a commodity.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	$____________	Unfavorable Favorable Unfavorable
Vinegar	$____________	Favorable Favorable Unfavorable
Corn syrup	$____________	Unfavorable Favorable Unfavorable
Salt	$_____________	Favorable Favorable Unfavorable
Total direct materials quantity variance	$_____________	Unfavorable Favorable Unfavorable