Question

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,400 pounds) has the following standards Standard Quantity Standard Price $ 0.54 per lb $ 3.30 per gal $12.00 per gal $ 3.00 per lb Whole tomatoes Vinegar Corn syrup Salt 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: 2,400 lbs. of tomatoes 125 gal. of vinegar 12 gal. of corn syrup 51 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 Whole tomatoes Vinegar Corn syrup Salt 2,300 lbs 130 gal 11 gal 52 lbs Standard Cost per Batch

Answer 1