Standard Quantity | Standard price
Whole tomatoes 3,360 lbs. | $ 0.50 per lb.
Vinegar 220 gal. | 3.00 per gal.
Corn syrup 20 gal. | 12.00 per gal.
Salt 80 lbs. | 3.00 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-54 were as follows:
3,556 lbs. of tomatoes
230 gal. of vinegar
18 gal. of corn syrup
75 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-54.
Answer:
a.
Standard
Quantity ×
Standard
Price =
Standard
Cost per
Batch
Whole tomatoes……… 3,360 lbs. $ 0.50 per lb. $1,680
Vinegar………………… 220 gal. 3.00 per gal. 660
Corn syrup…………… 20 gal. 12.00 per gal. 240
Salt…………………… 80 lbs. 3.00 per lb. 240
$2,820
÷ Pounds per batch…………………………………………… 1,880 lbs.
$ 1.50 per lb.
b. Actual
Quantity for
Batch K-54
–
Standard
Quantity per
Batch
=
Quantity
Difference
×
Standard
Price
=
Materials
Quantity
Variance
3,556 lbs.
230 gal.
18 gal.
75 lbs.
3,360 lbs.
220 gal.
20 gal.
80 lbs.
196 lbs.
10 gal.
(2) gal.
(5) lbs.
$ 0.50 per lb.
3.00 per gal.
12.00 per gal.
3.00 per lb.
$98 U
30 U
–24 F
–15 F
$89 U
