Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that...

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Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materialscosts. Assume that a batch of ketchup (2,700 pounds) has thefollowing standards:
Standard Quantity Standard Price
Whole tomatoes 4,500 lbs. $ 0.53 per lb.
Vinegar 250 gal. $ 3.20 per gal.
Corn syrup 22 gal. $ 11.80 per gal.
Salt 100 lbs. $ 2.90 per lb.
The actual materials in a batch may vary from the standard dueto tomato characteristics. Assume that the actual quantities ofmaterials for batch K-111 were as follows:
4,700 lbs. of tomatoes
240 gal. of vinegar
23 gal. of corn syrup
99 lbs. of salt
a. Determine the standard unit materials costper pound for a standard batch. If required, round amounts to thenearest cent.
Ingredient Standard Cost per Batch
Whole tomatoes $
Vinegar $
Corn syrup $
Salt $
Total $
Standard unit materials cost per pound $
b.Â Â Determine the direct materialsquantity variance for batch K-111. If required, round amounts tothe nearest cent. Enter a favorable variance as a negative numberusing a minus sign and an unfavorable variance as a positivenumber.
Ingredient Materials Quantity Variance Favorable/Unfavorable
Whole tomatoes $
Vinegar $
Corn syrup $
Salt $
Total direct materials quantity variance $

Answer & Explanation Solved by verified expert

3.9 Ratings (668 Votes)

a Standard Unit Material Cost per Pound Ingredient Standard Cost per Batch Whole Tomatoes 2385 Vinegar 800 Corn Syrup 25960 Salt 290 Total 373460 Total Unit Material Cost per pound 138 Explanation Standard Cost Standard Quantity Standard Price See Answer

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	Standard Quantity	Standard Price
Whole tomatoes	4,500	lbs.	$ 0.53	per lb.
Vinegar	250	gal.	$ 3.20	per gal.
Corn syrup	22	gal.	$ 11.80	per gal.
Salt	100	lbs.	$ 2.90	per lb.

Ingredient	Standard Cost per Batch
Whole tomatoes	$
Vinegar	$
Corn syrup	$
Salt	$
Total	$
Standard unit materials cost per pound	$

Ingredient	Materials Quantity Variance	Favorable/Unfavorable
Whole tomatoes	$
Vinegar	$
Corn syrup	$
Salt	$
Total direct materials quantity variance	$