Standard Product Cost, Direct Materials Variance

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,800 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	4,700	lbs.	$ 0.35	per lb.
Vinegar	260	gal.	2.1	per gal.
Corn syrup	22	gal.	7.8	per gal.
Salt	104	lbs.	1.9	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:

4,900 lbs. of tomatoes

250 gal. of vinegar

23 gal. of corn syrup

103 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,800 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 4,700 lbs. $ 0.35 per lb. Vinegar 260 gal. 2.1 per gal. Corn syrup 22 gal. 7.8 per gal. Salt 104 lbs. 1.9 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: 4,900 lbs. of tomatoes 250 gal. of vinegar 23 gal. of corn syrup 103 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost Ingredient 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. 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. Materials Quantity Variance Favorable/ Unfavorable Ingredient Whole tomatoes Vinegar $ Corn syrup Salt Total direct materials quantity variance