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 |
2,400 pounds |
$0.40 per pound |
|
Vinegar |
130 gallons |
2.50 per gallon |
|
Corn syrup |
10 gallons |
8.00 per gallon |
|
Salt |
54 pounds |
2.50 per pound |
The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch W196 were as follows:
|
2,500 |
pounds of tomatoes |
|
115 |
gallons of vinegar |
|
13 |
gallons of corn syrup |
|
53 |
pounds of salt |
a. Determine the standard unit materials cost per pound for a standard batch.
b. Determine the direct materials quantity variance for batch W196.