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: a. Gallon units produced: 25,000. b. Ounces of materials purchased and used: 2,650,000 ounces at $0.055. 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. 13,250 V Unfavorable 2. Compute the materials usage variance. 4,500 X Favorable $ 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 2,045,000 ounces of material during this week. How many gallons of juice were produced? If required, round your answer to nearest whole value. 15,352 gallons What was the actual price paid per ounce of materials? Round your answer to the nearest cent. 0.06 per ounce Feedhar Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips @ $4) $12.00 Direct labor (0.75 hr. @ $12) 9.00 Total prime cost $21.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 278,500 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,000 hours at $13.00 per hour. Required: 1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. Enter favorable values as negative numbers and unfavorable values as positive numbers. Price variance $ 194,950 X Favorable Usage variance $ 10,000 Unfavorable Total variance 184,950 x Favorable