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Standard product cost, direct materials variance

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

Standard Quantity Standard price

Whole tomatoe 4,200 lbs. $0.54 per lb.

Vinegar 230 gal. $ 3.30 per gal.

Corn syrup 20 gal. $ 12.00 per gal.

Salt 92 lbs. $ 3.00 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:

4,400 lbs. of tomatoes

221 gal. Of water

21 gal. Of corn syrup

91 lbs. of salt

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

Ingredients Standard cost per batch

Whole tomatoes $

Vinegar $

Corn syrup $

Salt $

Total $

Standard unit materials cost per pound $

b. Determine the direct material 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.

Ingredients. Material quantity variance Favorable/Unfavorable

Whole tomatoes $

Vinegar. $

Corn syrup. $

Salt. $

Total. $

Standard unit materials cost per pound $

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