Standard Product Cost, Direct Materials Variance

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (3,128 pounds) has the following standards:

Standard Quantity	Standard Price
Whole tomatoes	4,000	lbs.	$ 0.60	per lb.
Vinegar	260	gal.	2.25	per gal.
Corn syrup	25	gal.	28.00	per gal.
Salt	100	lbs.	2.25	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:

4,250 lbs. of tomatoes

275 gal. of vinegar

22 gal. of corn syrup

90 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 K-111. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

IngredientMaterials Quantity VarianceFavorable/Unfavorable Tomatoes $ Vinegar $ Corn syrup $ Salt $ Total direct materials quantity variance$