Question: Need assistance with the below please: Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,000 pounds) has the
Need assistance with the below please:
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,000 pounds) has the following standards:
| Standard Quantity | Standard Price | |||
| Whole tomatoes | 1,700 | lbs. | $ 0.51 | per lb. |
| Vinegar | 90 | gal. | $ 3.10 | per gal. |
| Corn syrup | 8 | gal. | $ 11.30 | per gal. |
| Salt | 36 | 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:
| 1,800 lbs. of tomatoes |
| 86 gal. of vinegar |
| 9 gal. of corn syrup |
| 35 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 | $ |
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