H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,700 pounds) has the following standards: Ingredient Standard Quantity Standard Price Whole tomatoes 4,500 lbs. $0.37 per lb. Vinegar 250 gal. 2.30 per gal. Corn syrup 22 gal. 8.20 per gal. Salt 100 lbs. 2.10 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: 4,700 lbs. of tomatoes240 gal. of vinegar23 gal. of corn syrup99 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 $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 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 $fill in the blank 7 Vinegar fill in the blank 9 Corn syrup fill in the blank 11 Salt fill in the blank 13 Total direct materials quantity variance $fill in the blank 15

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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Question

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (2,700 pounds) has the following standards:

Ingredient	Standard Quantity	Standard Price
Whole tomatoes	4,500 lbs.	$0.37 per lb.
Vinegar	250 gal.	2.30 per gal.
Corn syrup	22 gal.	8.20 per gal.
Salt	100 lbs.	2.10 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:

4,700 lbs. of tomatoes
240 gal. of vinegar
23 gal. of corn syrup
99 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 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	$fill in the blank 7
Vinegar	fill in the blank 9
Corn syrup	fill in the blank 11
Salt	fill in the blank 13
Total direct materials quantity variance	$fill in the blank 15