Question
Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,000 pounds) has the
Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,000 pounds) has the following standards:
Standard Quantity | Standard Price | |||
Whole tomatoes | 1,700 | lbs. | $ 0.44 | per lb. |
Vinegar | 90 | gal. | $ 2.70 | per gal. |
Corn syrup | 8 | gal. | $ 9.80 | per gal. |
Salt | 36 | lbs. | $ 2.40 | 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:
1,800 lbs. of tomatoes |
86 gal. of vinegar |
9 gal. of corn syrup |
35 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 1 |
Vinegar | $fill in the blank 2 |
Corn syrup | $fill in the blank 3 |
Salt | $fill in the blank 4 |
Total | $fill in the blank 5 |
Standard unit materials cost per pound | $fill in the blank 6 |
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 7 | FavorableUnfavorableUnfavorable |
Vinegar | $fill in the blank 9 | FavorableUnfavorableFavorable |
Corn syrup | $fill in the blank 11 | FavorableUnfavorableUnfavorable |
Salt | $fill in the blank 13 | FavorableUnfavorableFavorable |
Total direct materials quantity variance | $fill in the blank 15 | FavorableUnfavorableUnfavorable |
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