Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds)
Question:
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards:
Standard Quantity | Standard Price | |||
Whole tomatoes | 3,800 | lbs. | $0.48 | per lb. |
Vinegar | 210 | gal. | 2.90 | per gal. |
Corn syrup | 18 | gal. | 10.70 | per gal. |
Salt | 84 | lbs. | 2.70 | 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 08-99 were as follows:
4,000 lbs. of tomatoes |
202 gal. of vinegar |
19 gal. of corn syrup |
83 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 | $ | |
Vinegar | ||
Corn syrup | ||
Salt | ||
Total direct materials quantity variance | $ |
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello