Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 43

Standard product cost, direct materials variance
HJ. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (3,128 pounds) has the following standards:

The actual materials in a hatch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for hatch K-111 were as follows:
4,250 lbs. of tomatoes
275 gal. of vinegar
22 gal. of corn syrup
90 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-111. Round your answer to the nearest cent.