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Question: standard product cost direct materials variance condiments company uses standards...

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Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,900 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 4,800 lbs. $ 0.47 per lb.
Vinegar 270 gal. $ 2.90 per gal.
Corn syrup 23 gal. $ 10.40 per gal.
Salt 108 lbs. $ 2.60 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 K-111 were as follows:

5,000 lbs. of tomatoes
259 gal. of vinegar
24 gal. of corn syrup
107 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 K-111. 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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