Question

Jones Company uses standards to control its materials costs. Assume that a batch of ketchup (1,200 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	2,000	lbs.	$ 0.42	per lb.
Vinegar	110	gal.	$ 2.60	per gal.
Corn syrup	9	gal.	$ 9.30	per gal.
Salt	44	lbs.	$ 2.30	per lb.

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-111 were as follows:

2,100 lbs. of tomatoes

106 gal. of vinegar

10 gal. of corn syrup

43 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	Standard Cost per Batch
Whole tomatoes	$
Vinegar	$
Corn syrup	$
Salt	$
Total	$
Standard unit materials cost per pound	$

b.  Determine the direct materials quantity variance for batch K-111. 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.

Ingredient	Materials Quantity Variance	Favorable/Unfavorable
Whole tomatoes	$
Vinegar	$
Corn syrup	$
Salt	$
Total direct materials quantity variance	$

Answer 1

Refer to the below image for the above mentioned requirements in a detailed way of solution.