Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards: ETE Standard Quantity Standard Price Whole tomatoes 4,200 Ibs. $0.46 per Ib. Vinegar 230 gal. 2.80 per gal. Corn syrup 20 gal. 10.20 per gal. Salt 92 Ibs. 2.60 per Ib. 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 4,400 lbs. of tomatoes 221 gal. of vinegar 21 gal. of corn syrup 91 Ibs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost Ingredient per Batch Whole tomatoes $ Vinegar Corn syrup Salt Total $ Standard unit materials cost per pound $4 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.

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards: ETE Standard Quantity Standard Price Whole tomatoes 4,200 Ibs. $0.46 per Ib. Vinegar 230 gal. 2.80 per gal. Corn syrup 20 gal. 10.20 per gal. Salt 92 Ibs. 2.60 per Ib. 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 4,400 lbs. of tomatoes 221 gal. of vinegar 21 gal. of corn syrup 91 Ibs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Standard Cost Ingredient per Batch Whole tomatoes $ Vinegar Corn syrup Salt Total $ Standard unit materials cost per pound $4 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.

Name: Condiments Company uses standards to control its materials costs. Ass
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Description: Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,500 pounds) has the following standards:ETEStandard QuantityStandard PriceWhole tomatoes4,200 Ibs.$0.46 per Ib.Vinegar230 gal.2.80 per gal.Corn syrup

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 7E: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup...

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