StandardProduct Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 pounds) has the following standards:

Standard Quantity Standard Price

Whole tomatoes 2,500lbs.$ 0.44per lb.

Vinegar 140gal.$ 2.70per gal.

Corn syrup 12gal.$ 9.80per gal.

Salt 56lbs.$ 2.40per 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:

2,600 lbs. of tomatoes

134 gal. of vinegar

13 gal. of corn syrup

55 lbs. of salt

a.Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

Standard unit materials cost per pound $_____??

b.Determine thedirect materials quantity variancefor 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 ____ ____

Vinegar ____ ____

Corn syrup ____ ____

Salt

Total direct materials quantity variance