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a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt Total 1,248 Ingredient 432 130.5 ✓ 158.4 1,968.90 ✓ Standard unit materials cost per pound b. Determine the direct materials quantity variance for batch 08-99. 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. Materials Quantity 1.25 X Variance Favorable/Unfavorable

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt Total 1,248 Ingredient 432 130.5 ✓ 158.4 1,968.90 ✓ Standard unit materials cost per pound b. Determine the direct materials quantity variance for batch 08-99. 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. Materials Quantity 1.25 X Variance Favorable/Unfavorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,900 pounds) has the following standards: Standard Quantity Standard Price 3,200 lbs. $0.39 per lb. 180 gal. 2.40 per gal. 15 gal. 8.70 per gal. 72 lbs. 2.20 per lb. Whole tomatoes Vinegar Corn syrup Salt The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 3,300 lbs. of tomatoes 173 gal. of vinegar 16 gal. of corn syrup 71 lbs. of salt
Transcribed Image Text:Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,900 pounds) has the following standards: Standard Quantity Standard Price 3,200 lbs. $0.39 per lb. 180 gal. 2.40 per gal. 15 gal. 8.70 per gal. 72 lbs. 2.20 per lb. Whole tomatoes Vinegar Corn syrup Salt The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows: 3,300 lbs. of tomatoes 173 gal. of vinegar 16 gal. of corn syrup 71 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt Total Ingredient Whole tomatoes Vinegar Corn syrup Salt Standard unit materials cost per pound b. Determine the direct materials quantity variance for batch 08-99. 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. Materials Quantity Total direct materials quantity variance 1,248 432 $ 130.5 ✓ 158.4 ✓ $ 1,968.90 ✓ 1.25 X Variance 39 16.80 X Favorable/Unfavorable
Transcribed Image Text:a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt Total Ingredient Whole tomatoes Vinegar Corn syrup Salt Standard unit materials cost per pound b. Determine the direct materials quantity variance for batch 08-99. 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. Materials Quantity Total direct materials quantity variance 1,248 432 $ 130.5 ✓ 158.4 ✓ $ 1,968.90 ✓ 1.25 X Variance 39 16.80 X Favorable/Unfavorable
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