Materials Variances Torres Company produces fruit juices, sold in litres. Recently, the company adopted the following material standard for one litre of its fruit juice: Direct materials (128 grams @ $0.03) = $3.84 During the first week of operation, the company experienced the following results: a. Litre units produced: 21,000. b. Grams of materials purchased and used: 2,750,000 grams at $0.070. c. No beginning or ending inventories of raw materials. Required: If required, round your answers to the nearest dollar. 1. Compute the materials price variance. $ 2. Compute the materials usage variance