Determine the standard unit materials cost per pound

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Question - H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 pounds) has the following standards:

Standard Quantity Standard Price

Whole tomatoes 2,500 LBs. $0.45 per IB

Vinegar 140 gal. 2.75 pergal

Corn syrup 12 gal. 10.00 pergal

Salt 56 Lbs 2.50 per IB

The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K103 were as follows:

2,600 IBs of tomatoes

135 gal. of vingar

13 gal. of corn syrup

55 lbs. of salt

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

b. Determine the direct materials quantity variance for batch K103. Round all per unit answers to nearest whole cent. Use the minus sign to enter favorable variances as negative numbers.

Reference no: EM131785605

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