Acompany that produces a popular brand of pasta decides against increasing product price. instead, the management decides to decrease the quantity of packed content from 100gms to 90gms. according to the management, a price increase would risk losing its brand loyal consumers who relate to the brand as affordable. this is an attempt to retain the consumers of their product.

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is: