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Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,000 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	1,700	lbs.	$ 0.44	per lb.
Vinegar	90	gal.	$ 2.70	per gal.
Corn syrup	8	gal.	$ 9.80	per gal.
Salt	36	lbs.	$ 2.40	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:

1,800 lbs. of tomatoes

86 gal. of vinegar

9 gal. of corn syrup

35 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

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