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Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials
Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @ \$0.06=\$7.68 During the first week of operation, the company experienced the following results: a. Gallon units produced: 23,000. b. Ounces of materials purchased and used: 2,730,000 ounces at $0.045. c. No beginning or ending inventories of raw materials. Required: Note: Enter favorable values as negative numbers. Enter unfavorable values as positive numbers. 1. Compute the materials price variance. $ 2. Compute the materials usage variance. $ 3. During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $23,000 unfavorable. The company purchased and used 2,420,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value. X gallons What was the actual price paid per ounce of materials? Round your answer to the nearest cent. $ per ounce
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