Chapter 23, Problem 7E

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards:

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:

a.    Determine the standard unit materials cost per pound for a standard batch.

b.    Determine the direct materials quantity variance for batch 08-99.