Materials Variances

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:

Gallon units produced: 23,000.

Ounces of materials purchased and used: 2,650,000 ounces at $0.045.

No beginning or ending inventories of raw materials.

Required:

If required, enter favorable values as negative 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 2,315,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value. ___________gallons

What was the actual price paid per ounce of materials? Round your answer to the nearest cent _____________$per ounce