Reference no: EM132715651

Kandi Co. uses standards to control its materials cost. Assume that a batch of 1,500 pounds has the following standards:

tomatoes - 2,400 lbs @ P4.50/lb.;

Vinegar - 160 gal @ P27.5/gal;

Corn syrup - 14 gal @ P100/gal;

Salt - 62 lbs @ P25/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 109 were as follows:

tomatoes - 2,540 lbs;

vinegar - 164;

corn syrup - 13 gal;

salt - 60 lbs.

Required:

Problem a: Determine the following:

1. Standard unit of materials cost per pound for a standard batch;
2. Direct materials quantity variance for batch 109.