Enrique Industries purchased and consumed 45,000 gallons of direct material that was used in the production of 10,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Enrique's accounting records at the end of the period disclosed a material price variance of $4,500U and a material quantity variance of $2,500F, what is the actual price paid for a gallon of direct material?

Multiple Choice

• $0.50.
• $0.30.
• Not enough information to judge.
• None of the answers is correct.
• $0.60.