Standard Product Cost, Direct Materials Variance

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	4,000	lbs.	$ 0.52	per lb.
Vinegar	220	gal.	3.2	per gal.
Corn syrup	19	gal.	11.6	per gal.
Salt	88	lbs.	2.9	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:

4,200 lbs. of tomatoes

211 gal. of vinegar

20 gal. of corn syrup

87 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	Standard Cost per Batch
Whole tomatoes	$fill in the blank 1
Vinegar	$fill in the blank 2
Corn syrup	$fill in the blank 3
Salt	$fill in the blank 4
Total	$fill in the blank 5
Standard unit materials cost per pound	$fill in the blank 6

b. Determine the direct materials quantity variance for batch K-111. 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
Whole tomatoes	$fill in the blank 7
Vinegar	$fill in the blank 9
Corn syrup	$fill in the blank 11
Salt	$fill in the blank 13
Total direct materials quantity variance	$fill in the blank 15