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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 (2,200 pounds) has the following standards:

Standard Quantity Standard Price
Whole tomatoes 3,700 lbs. $ 0.51 per lb.
Vinegar 200 gal. $ 3.10 per gal.
Corn syrup 17 gal. $ 11.30 per gal.
Salt 80 lbs. $ 2.80 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:

3,800 lbs. of tomatoes
192 gal. of vinegar
18 gal. of corn syrup
79 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 $ Unfavorable
Vinegar $ Favorable
Corn syrup $ Unfavorable
Salt $ Favorable
Total direct materials quantity variance $ Unfavorable

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