Ask Question
1 June, 21:02

Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,300 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 3,800 lbs. $0.46 per lb. Vinegar 210 gal. 2.80 per gal. Corn syrup 18 gal. 10.20 per gal. Salt 84 lbs. 2.60 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 08-99 were as follows: 4,000 lbs. of tomatoes 202 gal. of vinegar 19 gal. of corn syrup 83 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

+1
Answers (1)
  1. 1 June, 21:03
    0
    Standard unit materials cost per pound=$1.11 per pound

    Explanation:

    The standard material cost for a standard batch = Total material cost / standard qty (in pounds)

    Total material cost = (3,800 * $0.46) + (210 * 2.80) (84*2.60) = $2554.4

    Total standard quantity = 2,300 pounds

    Standard unit materials cost per pound = $2554.4 / 2,300 pounds=$1.11 per pounds

    standard unit materials cost per pound=$1.11 per pound
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers