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	$