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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 (2,700 pounds) has the

Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,700 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 4,500 lbs. $ 0.44 per lb.
Vinegar 250 gal. $ 2.70 per gal.
Corn syrup 22 gal. $ 9.80 per gal.
Salt 100 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:

4,700 lbs. of tomatoes
240 gal. of vinegar
23 gal. of corn syrup
99 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 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 $
Vinegar $
Corn syrup $
Salt $
Total direct materials quantity variance $

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