Question
Courtney purchased and consumed 56,000 gallons of direct material that was used in the production of 15,000 finished units of product. According to engineering specifications,
Courtney purchased and consumed 56,000 gallons of direct material that was used in the production of 15,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of four gallons. If a review of Courtney's accounting records at the end of the period disclosed a material price variance of $5,600U and a material quantity variance of $2800.0F, determine the actual price paid for a gallon of direct material. (Do not round intermediate calculations.)
a)$0.70.
b)$0.50.
c)$0.80.
d)None of these.
e)Not enough information to judge.
Please explain. Thanks!!
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