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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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