Please answer and explain. H.J. Heinz Company uses standards to control its mate
ID: 2361164 • Letter: P
Question
Please answer and explain. H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (1,500 pounds) has the following standards: 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: a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answers to nearest whole cent. Ingredient Standard Cost per Batch Whole tomatoes $ Vinegar $ Corn syrup $ Salt $ Total $ Standard unit materials cost per pound $Explanation / Answer
Standard unit Material cost per pound
Whole Tomatoes (2500*0.45) 1125
Vinegar (140*2.75) 385
Salt 55
Total Cost (1565/1,500=1.043