Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 4,000 lbs. $0.46 per lb. 220 gal 2.80 per gal. Vinegar 10.20 per gal 19 gal Corn syrup 88 lbs 2.60 per lb 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: 4,200 lbs. of tomatoes 211 gal. of vinegar 20 gal. of corn syrup 87 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 Ingredient 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. Materials Quantity Ingredient Variance Favorable/Unfavorable $ Whole tomatoes Vinegar Corn syrup Salt Total direct materials quantity variance
Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 4,000 lbs. $0.46 per lb. 220 gal 2.80 per gal. Vinegar 10.20 per gal 19 gal Corn syrup 88 lbs 2.60 per lb 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: 4,200 lbs. of tomatoes 211 gal. of vinegar 20 gal. of corn syrup 87 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 Ingredient 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. Materials Quantity Ingredient Variance Favorable/Unfavorable $ Whole tomatoes Vinegar Corn syrup Salt Total direct materials quantity variance
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Standard Product Cost, Direct Materials Variance
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,400 pounds) has the following standards:
Standard Quantity
Standard Price
Whole tomatoes
4,000 lbs.
$0.46 per lb.
220 gal
2.80 per gal.
Vinegar
10.20 per gal
19 gal
Corn syrup
88 lbs
2.60 per lb
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:
4,200 lbs. of tomatoes
211 gal. of vinegar
20 gal. of corn syrup
87 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
Ingredient
per Batch
Whole tomatoes
Vinegar
Corn syrup
Salt
Transcribed Image Text: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.
Materials Quantity
Ingredient
Variance
Favorable/Unfavorable
$
Whole tomatoes
Vinegar
Corn syrup
Salt
Total direct materials quantity variance
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