10.

Gipple Corporation makes a product that uses a material with the quantity standard of 7.7 grams per unit of output and the price standard of $6.40 per gram. In January the company produced 3,800 units using 25,270 grams of the direct material. During the month the company purchased 27,800 grams of the direct material at $6.60 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $5,560 U $5,852E $5,852U $5,560 E