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Standard Product Cost, Direct Materials Variance H . J . Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup
Standard Product Cost, Direct Materials Variance
HJ Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup pounds has the following standards:
The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch were as follows:
of tomatoes
gal. of vinegar
gal. of corn syrup
lbs of salt
a Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.
number.
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