Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards:   Standard Quantity Standard Price Whole tomatoes 3,800 lbs. $0.48 per lb. Vinegar 210 gal. 2.90 per gal. Corn syrup 18 gal. 10.70 per gal. Salt 84 lbs. 2.70 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 08-99 were as follows: 4,000 lbs. of tomatoes 202 gal. of vinegar 19 gal. of corn syrup 83 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 Costper Batch Whole tomatoes $ Vinegar   Corn syrup   Salt   Total $ 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. Ingredient Materials QuantityVariance Favorable/Unfavorable Whole tomatoes $   Vinegar     Corn syrup     Salt     Total direct materials quantity variance $

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards:

  Standard Quantity Standard Price
Whole tomatoes 3,800 lbs. $0.48 per lb.
Vinegar 210 gal. 2.90 per gal.
Corn syrup 18 gal. 10.70 per gal.
Salt 84 lbs. 2.70 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 08-99 were as follows:

4,000 lbs. of tomatoes
202 gal. of vinegar
19 gal. of corn syrup
83 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 $
Vinegar  
Corn syrup  
Salt  
Total $
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.


Ingredient
Materials Quantity
Variance

Favorable/Unfavorable
Whole tomatoes $  
Vinegar    
Corn syrup    
Salt    
Total direct materials quantity variance $  
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