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Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	2,800	lbs.	$0.43	per lb.
Vinegar	160	gal.	2.60	per gal.
Corn syrup	14	gal.	9.60	per gal.
Salt	64	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:

2,900 lbs. of tomatoes

154 gal. of vinegar

15 gal. of corn syrup

63 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

Ingredient	Standard Cost per Batch
Whole tomatoes	$fill in the blank 1
Vinegar	fill in the blank 2
Corn syrup	fill in the blank 3
Salt	fill 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.

Ingredient	Materials Quantity Variance	Favorable/Unfavorable
Whole tomatoes	$fill in the blank 7
Vinegar	fill in the blank 9
Corn syrup	fill in the blank 11
Salt	fill in the blank 13
Total direct materials quantity variance	$fill in the blank 15

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