H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of...
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H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (6,000 pounds) has the following standards:
Standard Quantity Standard Price Whole tomatoes 7,500 lbs. $0.40 per lb. Vinegar 600 gal. 1.75 per gal. Corn syrup 50 gal. 8.00 per gal. Salt 500 lbs. 0.70 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 H3001 were as follows:
7,850 lbs. of tomatoes
575 gal. of vinegar
63 gal. of corn syrup
480 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch. Round your answer to the nearest cent. $fill in the blank 1 per lb.
b. Determine the total direct materials quantity variance for batch H3001. Round your answer to the nearest cent. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. $fill in the blank 2
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (6,000 pounds) has the following standards:
| Standard Quantity | Standard Price | |||
| Whole tomatoes | 7,500 | lbs. | $0.40 | per lb. |
| Vinegar | 600 | gal. | 1.75 | per gal. |
| Corn syrup | 50 | gal. | 8.00 | per gal. |
| Salt | 500 | lbs. | 0.70 | 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 H3001 were as follows:
7,850 lbs. of tomatoes
575 gal. of vinegar
63 gal. of corn syrup
480 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch. Round your answer to the nearest cent. $fill in the blank 1 per lb.
b. Determine the total direct materials quantity variance for batch H3001. Round your answer to the nearest cent. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. $fill in the blank 2
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