Standard Product Cost, Direct Materials Variance

H$.$J$.$ Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup $(2,100$ pounds$)$ has the following standards:

Standard Quantity Standard Price

Whole tomatoes $3,500$ lbs$.$ $ $0\mathrm{.}4$ per lb$.$

Vinegar $200$ gal. $2\mathrm{.}4$ per gal.

Corn syrup $17$ gal. $8\mathrm{.}9$ per gal.

Salt $80$ lbs$.2\mathrm{.}2$ 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:

$3,600$ lbs$.$ of tomatoes

$192$ gal. of vinegar

$18$ gal. of corn syrup

$79$ 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 $7$

Vinegar $fill in the blank $9$

Corn syrup $fill in the blank $11$

Salt $fill in the blank $13$

Total direct materials quantity variance $fill in the blank $15$