Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,100 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 1,800 Ibs. $0.54 per Ib. Vinegar 100 gal. 3.30 per gal. Corn syrup 9 gal. 12.00 per gal. Salt 40 Ibs. 3.00 per Ib. 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 wer 1,900 Ibs. of tomatoes 96 gal. of vinegar 10 gal. of corn syrup 39 Ibs. of salt
Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,100 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 1,800 Ibs. $0.54 per Ib. Vinegar 100 gal. 3.30 per gal. Corn syrup 9 gal. 12.00 per gal. Salt 40 Ibs. 3.00 per Ib. 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 wer 1,900 Ibs. of tomatoes 96 gal. of vinegar 10 gal. of corn syrup 39 Ibs. of salt
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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
Ingredient
Variance
Favorable/Unfavorable
Whole tomatoes
$4
Unfavorable v
Vinegar
Favorable
Corn syrup
Unfavorable
Salt
Favorable v
Total direct materials quantity variance
Unfavorable
Transcribed Image Text:Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,100 pounds) has the following standards:
Standard Quantity
Standard Price
Whole tomatoes
1,800 Ibs.
$0.54 per Ib.
Vinegar
100 gal.
3.30 per gal.
Corn syrup
9 gal.
12.00 per gal.
Salt
40 Ibs.
3.00 рer 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:
1,900 lbs. of tomatoes
96 gal. of vinegar
10 gal. of corn syrup
39 Ibs. 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
Ingredient
per Batch
Whole tomatoes
Vinegar
Corn syrup
Salt
Total
Standard unit materials cost per pound
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