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


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



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:
2,540 lbs. of tomatoes
164 gal, of vinegar
13 gal, of corn syrup
60 lbs. of salt
(a) Determine the standard unit materials cost per pound for a standard batch.
(b) Determine the direct materials quantity variance for batch K-54.
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:
2,540 lbs. of tomatoes
164 gal, of vinegar
13 gal, of corn syrup
60 lbs. of salt
(a) Determine the standard unit materials cost per pound for a standard batch.
(b) Determine the direct materials quantity variance for batch K-54.