Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1.500 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes Vinegar Com syrup Salt 2,500 lbs. $0.47 per lb. 140 gal. 2.90 per gal. 12 gal. 10.40 per gal. 56 lbs. 2.60 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: 2,600 lbs. of tomatoes 134 gal. of vinegar 13 gal. of com syrup 55 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 Whole tomatoes Vinegar Com syrup Salt Total Standard unit materials cost per pound Standard Cost per Batch 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 Whole tomatoes Vinegar Com syrup Salt Total direct materials quantity variance Materials Quantity Variance Favorable/Unfavorable 1 Direct Labor Variances The following data relate to labor cost for production of 3,200 cellular telephones: Actual: 2,160 hrs. at $16.00 Standard: 2.130 hrs. at $16.20 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a The lower level of experience or training may have resulted in than standard. labor rate than planned. efficient performance. Thus, the actual time required was Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor 185,000 lbs. at $5.50 per lb. 18,500 hrs. at $17.50 per hr. Actual Costs: 183,200 lbs. at $5.30 per lb. 18,930 hrs. at $17.70 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: $76,920 variable cost $127,446 fixed cost Variable cost, $4.20 Fixed cost, $6.60 Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance