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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 (7,650 pounds) has

Standard Product Cost, Direct Materials Variance

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 5,000 lbs. $0.75 per lb.
Vinegar 350 gal. 0.90 per gal.
Corn syrup 40 gal. 7.50 per gal.
Salt 125 lbs. 1.80 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 08-99 were as follows:

4,900 lbs. of tomatoes
375 gal. of vinegar
36 gal. of corn syrup
140 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole 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 08-99. 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
Tomatoes $
Vinegar
Corn syrup
Salt
Total direct materials quantity variance $

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