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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 (3,128 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 (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$

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