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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:
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: 20,000 b. Ounces of materials purchased and used: 2,650,000 ounces at $0.045. c. No beginning or ending inventories of raw materials. Note: Enter favorable values as negative numbers. Enter unfavorable values as positive numbers. $ 1. Compute the materials price variance. Favorable 2. Compute the materials usage variance. Unfavorable
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