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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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