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question materials variances manzana company produces apple juice sold in gallons re 4293682

Question

Materials Variances

Manzana Company produces apple juice sold in gallons. Recently,the company adopted the following material standard for one gallonof its apple juice:

     Direct materials 128 oz. @ $0.05 =$6.40

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

  1. Gallon units produced: 20,000.
  2. Ounces of materials purchased and used: 2,650,000 ounces at$0.045.
  3. No beginning or ending inventories of raw materials.

What is the Materials Usage Varience?

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