1. 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. @ $0.05 = $6.40

   During the first week of operation, the company experienced the following results:

   1. Gallon units produced: 25,000.
   2. Ounces of materials purchased and used: 2,770,000 ounces at $0.055.
   3. 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 $25,000 unfavorable. The company purchased and used 2,345,000 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