StandardProduct Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,400 pounds) has the following standards:

Standard QuantityStandard PriceWhole tomatoes2,300lbs.$ 0.43per lb.Vinegar130gal.$ 2.60per gal.Corn syrup11gal.$ 9.60per gal.Salt52lbs.$ 2.40per 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:

2,400 lbs. of tomatoes 125 gal. of vinegar1 2 gal. of corn syrup 51 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 $

Vinegar $

Corn syrup $

Salt $

Total $

Standard unit materials cost per pound$

b.Determine thedirect materials quantity variancefor 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.

IngredientMaterials Quantity Variance Favorable/Unfavorable

Whole tomatoes$___Unfavorable

Vinegar $_____Favorable

Corn syrup $____Unfavorable

Salt $___Favorable

Total direct materials quantity variance $____Unfavorable