Answer:
A. $1.18
B. Whole tomatoes $90 Unfavorable
Vinegar ($24.30) Favorable
Corn syrup $10 Unfavorable
Salt ($2.50) Favorable
Total direct materials quantity variance $73.20 Unfavourable
Explanation:
a. Calculation to Determine the standard unit materials cost per pound for a standard batch.
Ingredient Standard quantity* Standard price= Standard Cost per Batch
Whole tomatoes 4,200 lbs.*$0.45 per lb=$1,890
Vinegar 230 gal.*$2.70 per gallon=$621
Corn syrup 20 gal.*$10.00 per gal=$200
Salt 92 lbs.* $2.50 per lb=$230
Total $2,941
Standard unit materials cost per pound=$2,941/$2,500 Standard unit materials cost per pound=$1.18
Therefore the standard unit materials cost per pound for a standard batch $1.18
[b] Calculation to determine the direct materials quantity variance for batch K-111
Ingredient Standard quantity-Actual Quantity =Difference* Standard price= Materials Quantity Variance Favorable/Unfavorable
Whole tomatoes 4,200 lbs -4,400 lbs=200 lbs*$0.45=$90 UNFAVORABLE
Vinegar 230 gal- 221 gal=(9gal)*$2.70=($24.30) FAVORABLE
Corn syrup 20 gal-21 gal=1gal*$10=$10 UNFAVORABLE
Salt 92 lbs-91 lbs=(1lbs)*$2.50=($2.50)FAVOURABLE
Total direct materials quantity variance $73.20 Unfavourable
($90-$24.30+$10-$2.50)
Therefore the direct materials quantity variance for batch K-111 will be:
Whole tomatoes $90 Unfavorable
Vinegar ($24.30) Favorable
Corn syrup $10 Unfavorable
Salt ($2.50) Favorable
Total direct materials quantity variance $73.20 Unfavourable
