Question
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. @ $0.05 = $6.40
During the first week of operation, the company experienced the following results:
- Gallon units produced: 20,000.
- Ounces of materials purchased and used: 2,650,000 ounces at $0.045.
- 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. $fill in the blank / Favorable or unfavorable
2. Compute the materials usage variance. $fill in the blank / Unfavorable or favorable
3. During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $20,000 unfavorable. The company purchased and used 2,000,000 ounces of material during this week. How many gallons of juice were produced? fill in the blank 5 gallons
What was the actual price paid per ounce of materials? Round your answer to the nearest cent. $fill in the blank 6 per ounce
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started