Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,300 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	2,200	lbs.	$ 0.51	per lb.
Vinegar	120	gal.	$ 3.10	per gal.
Corn syrup	10	gal.	$ 11.30	per gal.
Salt	48	lbs.	$ 2.80	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:

2,300 lbs. of tomatoes

115 gal. of vinegar

11 gal. of corn syrup

47 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	FavorableUnfavorableUnfavorable
Vinegar	$fill in the blank 9	FavorableUnfavorableFavorable
Corn syrup	$fill in the blank 11	FavorableUnfavorableUnfavorable
Salt	$fill in the blank 13	FavorableUnfavorableFavorable
Total direct materials quantity variance	$fill in the blank 15	FavorableUnfavorableUnfavorable

Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $9.00 per hour. If 3,100 units used 9,500 hours at an hourly rate of $8.64 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a. Direct labor rate variance	$fill in the blank 1	FavorableUnfavorableFavorable
b. Direct labor time variance	$fill in the blank 3	FavorableUnfavorableUnfavorable
c. Direct labor cost variance