Cost standards for one unit of product no$.$ C$77$:

Direct material $3$ pounds at $$2\mathrm{.}60$ per pound $ $7\mathrm{.}80$

Direct labor $6$ hours at $$7\mathrm{.}40$ per hour $44\mathrm{.}40$

Actual results:

Units produced $6,700$ units

Direct material purchased $26,500$ pounds at $$2\mathrm{.}80$ $ $74,200$

Direct material used $19,800$ pounds at $$2\mathrm{.}8055,440$

Direct labor $41,000$ hours at $$7\mathrm{.}20295,200$

Use the information to compute the following variances.

The direct$-$material price variance is:

Multiple Choice

$$3,960$ F$.$

None of the answers is correct.

$$3,960$ U$.$

$$5,300$ U$.$

$$5,300$ F$.$