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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:
1.During the second week, the materials usage variance was $4,000 unfavorable and the materials price variance was $20,000 unfavorable. The company purchased and used 2,000,000 ounces of material during this week. How many gallons of juice were produced?
2.What was the actual price paid per ounce of materials? Round your answer to the nearest cent.
When comparing the percentage-of-completion and completed-contract methods of accounting for long-term construction contracts, both methods will report the same:
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