Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.60 per pound	$	7.80
Direct labor	5 hours at $7.40 per hour		37.00
Actual results:
Units produced	8,200 units
Direct material purchased	26,900 pounds at $2.80	$	75,320
Direct material used	24,300 pounds at $2.80		68,040
Direct labor	41,400 hours at $7.20		298,080

Use the information to compute the following variances. The direct-material price variance is:

Multiple Choice

a.) $4,860 F.

b.) $4,860 U.

c.) $5,380 F.

d.) $5,380 U.

e.) None of the answers is correct.