H.J. Heinz Company uses standards to control its materials costs. Assume that a batch
of ketchup (6,000 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 H3001 were as follows:
7,850 lbs. of tomatoes
575 gal. of vinegar
63 gal. of com syrup
480 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch.
b. Determine the total direct materials quantity variance for batchH3001.

  • CreatedFebruary 04, 2014
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