H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards: Whole tomatoes Vinegar Corn syrup Salt 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 Whole tomatoes Vinegar Corn syrup Salt Total Standard Quantity Standard Price 2,800 lbs. $0.41 per lb. 160 gal. 2.50 per gal. 14 gal. 9.10 per gal. 64 lbs. 2.30 per lb. Ingredient Standard unit materials cost per pound 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. Materials Quantity Whole tomatoes Vinegar Corn syrup Salt Standard Cost per Batch Total direct materials quantity variance Variance Favorable/Unfavorable Favorable

H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has the following standards: Whole tomatoes Vinegar Corn syrup Salt 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 Whole tomatoes Vinegar Corn syrup Salt Total Standard Quantity Standard Price 2,800 lbs. $0.41 per lb. 160 gal. 2.50 per gal. 14 gal. 9.10 per gal. 64 lbs. 2.30 per lb. Ingredient Standard unit materials cost per pound 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. Materials Quantity Whole tomatoes Vinegar Corn syrup Salt Standard Cost per Batch Total direct materials quantity variance Variance Favorable/Unfavorable Favorable

Name: D Standard Product Cost, Direct Materials VarianceH.J. Heinz Company u
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Description: D Standard Product Cost, Direct Materials VarianceH.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,700 pounds) has thefollowing standards:Standard Quantity Standard Price$0.41 per lb.2.50 per gal.9.1

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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