StandardProduct Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards:

Standard QuantityStandard PriceWhole tomatoes4,200lbs.$ 0.54per lb.Vinegar230gal.$ 3.30per gal.Corn syrup20gal.$ 12.00per gal.Salt92lbs.$ 3.00per 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:

4,400 lbs. of tomatoes221 gal. of vinegar21 gal. of corn syrup91 lbs. of salt

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

IngredientStandard Cost per BatchWhole 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 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 VarianceFavorable/UnfavorableWhole tomatoes$fill in the blank 7

Unfavorable

Vinegar$fill in the blank 9

Favorable

Corn syrup$fill in the blank 11

Unfavorable

Salt$fill in the blank 13

Favorable

Total direct materials quantity variance$fill in the blank 15

Unfavorable