Question

Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (800 pounds) has the following standards: Standard Quantity Standard Price $0.39 per lb. Whole tomato es 1,300 lbs. 70 gal $2.40 per gal. Vinegar 6 gal $ 8.70 per gal. Corn syrup $2.20 per lb 28 lbs. Salt

Answer 1

А В C 1 A 2 standard Standard standard cost price(S) per batch 507 quantity 3 4 Whole tomatoes 1300 0.39 5Vinegar 6 Corn syrup 70 2.4 168 6 8.7 52.2 7 Salt 8 Total 61.6 28 2.2 788.8 9 Pounds per batch 800 Standard unit material 10 cost per pound $ 0.99 11

В C D 1 A 2 Standard standard standard cost quantity 1300 70 6 28 |price(S) 0.39 per batch =B4*C4 -B5*C5 =B6*C6 =B7*C7 -SUM(D4:D7) 800 3 4 Whole tomatoes 5Vinegar 6 Corn syrup 2.4 8.7 2.2 7 Salt 8 Total 9 Pounds batch per Standard unit material 10 cost per pound =D8 /D9 11 CO

В C F 1 2 Material quantity Standard price($) 0.39 Actual quantity for standard quantity quantity 3 batch k-54 per batch 1400 difference 1300 70 6 variance($) 100 39 unfavourable -7.2 favourable 8.7 unfavourable -2.2 favourable 38.3unfavotrable 67 -3 2.4 5 7 1 8.7 6 28 27 -1 2.2 7 8 9 10 11 LC OC

А В C E 1 2 standard Actual quantity quantity per 3 for batch k-54 batch 1300 70 Material Standard quantity price($) variance($) quantity difference unfavourable favourable unfavourable favourable -SUM(E4: E7) unfavourable -A4-B4 0.39 2.4 8.7 2.2 4 1400 C4*D4 A5-B5 C5*D5 5 67 -A6-B6 C6*D6 6 7 6 28 7 27 A7-B7 C7*D7 8 10 11 12 LL