Reference no: EM133078297

Question - Standard Product Cost, Direct Materials Variance - Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,900 pounds) has the following standards:

Standard Quantity Standard Price

Whole tomatoes 4,800 lbs. $0.43 per lb.

Vinegar 270 gal. 2.60 per gal.

Corn syrup 23 gal. 9.60 per gal.

Salt 108 lbs. 2.40 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:

5,000 lbs. of tomatoes

259 gal. of vinegar

24 gal. of corn syrup

107 lbs. of salt

Required -

a. Determine the standard unit materials cost per pound for a standard batch.

b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent.