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Problem - Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for 1 gallon of its apple juice: Direct materials [email protected] = $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.
Required - Compute the materials price variance.
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