Question

Standard Product Cost, Direct Materials VarianceCondiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,000 pounds) has the following standards:Standard Quantity Standard PriceWhole tomatoes 3,300 lbs. $ 0.39 per lb.Vinegar 190 gal. 2.40 per gal.Corn syrup 16 gal. 8.70 per gal.Salt 76 lbs. 2.20 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-54 were as follows:3,400 lbs. of tomatoes182 gal. of vinegar17 gal. of corn syrup75 lbs. of salta. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.Ingredient Standard Cost per BatchWhole tomatoes $Vinegar $Corn syrup $Salt $Total $Standard unit materials cost per pound $b. Determine the direct materials quantity variance for batch K-54. 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/UnfavorableWhole tomatoes $ SelectFavorableUnfavorableItem 8Vinegar $ SelectFavorableUnfavorableItem 10Corn syrup $ SelectFavorableUnfavorableItem 12Salt $ SelectFavorableUnfavorableItem 14Total direct materials quantity variance $ SelectFavorableUnfavorableItem 16

Answer 1

tomato 39 U

VINEGAR 19.2 F

CORN 8.7 U

SALT 2.2 F

TOTAL 26.3U

Material cost per pound: 1.0247‬

Step-by-step explanation:

`(standard\:quantity-actual\:quantity) * standard \: cost = DM \: quantity \: variance`

TOMATO

std quantity 3300.00

actual quantity 3400.00

std cost $0.39

quantity variance $(39.00)

`(3,300 - 3,400) * 0.39 = DM \: quantity \: variance`

VINEGAR

std quantity 190.00

actual quantity 182.00

std cost $2.40

`(190-182) * 2.4 = DM \: quantity \: variance`

quantity variance $19.20

CORN

std quantity 16.00

actual quantity 17.00

std cost $8.70

`(16-17) * 8.7 = DM \: quantity \: variance`

quantity variance $(8.70)

SALT

std quantity 76.00

actual quantity 75.00

std cost $2.20

`(76-75) *  2.2 = DM \: quantity \: variance`

quantity variance $2.20

material cost:

3,300 x 0.39 = 1,287

190 x 2.4 = 456

16 x 8.7 = 139.2

76 x 2.2 = 167.2

total 2,049.4

divided by 2,000 pounds: 1.0247‬