Standard Product Cost, Direct Materials Variance

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,600 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	4,300	lbs.	$ 0.46	per lb.
Vinegar	240	gal.	2.8	per gal.
Corn syrup	21	gal.	10.2	per gal.
Salt	96	lbs.	2.6	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:

4,500 lbs. of tomatoes

230 gal. of vinegar

22 gal. of corn syrup

95 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	FavorableUnfavorable
Vinegar	$fill in the blank 9	FavorableUnfavorable
Corn syrup	$fill in the blank 11	FavorableUnfavorable
Salt	$fill in the blank 13	FavorableUnfavorable
Total direct materials quantity variance	$fill in the blank 15