Standard Product Cost, Direct Materials Variance

H$.$J$.$ Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup $(7,650$ pounds$)$ has the following standards:

$$Standard QuantityStandard PriceWhole tomatoes$5,000$lbs$.$$$0\mathrm{.}75$per lb$.$Vinegar$350$gal$\mathrm{.}0\mathrm{.}90$per gal.Corn syrup$40$gal$\mathrm{.}7\mathrm{.}50$per gal.Salt$125$lbs$\mathrm{.}1\mathrm{.}80$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 $08-99$ were as follows:

$4,900$ lbs$.$ of tomatoes$375$ gal. of vinegar$36$ gal. of corn syrup$140$ lbs$.$ of salt

a$.$Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole cent.

Ingredient Standard Cost

per BatchWhole tomatoes$fill in the blank $1$Vinegarfill in the blank $2$Corn syrupfill in the blank $3$Saltfill in the blank $4$Total$fill in the blank $5$Standard unit materials cost per pound $fill in the blank $6$

b$.$ Determine the direct materials quantity variance for batch $08-99.$ 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.

IngredientMaterials Quantity

Variance

Favorable$/$UnfavorableTomatoes$fill in the blank $7$

FavorableUnfavorable

Vinegarfill in the blank $9$

FavorableUnfavorable

Corn syrupfill in the blank $11$

FavorableUnfavorable

Saltfill in the blank $13$

FavorableUnfavorable

Total direct materials quantity variance$fill in the blank $15$

FavorableUnfavorable