Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,000 pounds) has the following standards: Standard Quantity Standard Price
Whole tomatoes 3,300 lbs. $ 0.39 per lb.
Vinegar 190 gal. 2.40 per gal.
Corn syrup 16 gal. 8.70 per gal.
Salt 76lbs. 2.20 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-54 were as follows:
3,400 lbs. of tomatoes
182 gal. of vinegar
17 gal. of corn syrup
75 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-54. If required, round amounts to the nearest cent.