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Consider the following information: Direct material purchased and used, 95,000 gallons Standard quantity of direct material allowed for May production, 92,500 gallons Actual cost of

Consider the following information: Direct material purchased and used, 95,000 gallons Standard quantity of direct material allowed for May production, 92,500 gallons Actual cost of direct materials purchased and used, $251,650 Unfavorable direct-material quantity variance, $6,875 The direct-material price variance is:

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$9,600 F.

None of the answers is correct.

$8,125 U.

$8,125 F.

$9,600 U.

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