H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 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 W196 were as follows:
2,500 pounds of tomatoes
115 gallons of vinegar
13 gallons of corn syrup
53 pounds of salt

a. Determine the standard unit materials cost per pound for a standard batch.
b. Determine the direct materials quantity variance for batch W196.

Transcribed Image Text:

Standard Quantity Standard Price Whole tomatoes Vinegar Corn syrup Salt 2,400 pounds 130 gallons 10 gallons 54 pounds $0.40 per pound 2.50 per gallon 8.00 per gallon 2.50 per pound