HJ. 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 K-54 were as follows:2,540 lbs. of tomatoes164 gal, of vinegar13 gal, of corn syrup60 lbs. of salt(a) Determine the standard unit materials cost per pound for a standard batch.(b) Determine the direct materials quantity variance for batch K-54.

Transcribed Image Text:

Standard Quantity Standard Price $0.45 per Ib. 2.75 per gal. 10.00 per gal. 2.50 per Ib. 2,400 Ibs. Whole tomatoes Vinegar Corn syrup Salt 160 gal. 14 gal. 62 Ibs.