Enrique Industries purchased and consumed 72,000 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 five gallons. If a review of Enrique's accounting records at the end of the period disclosed a material price variance of $7,200U and a material quantity variance of $2,400F, what is the actual price paid for a gallon of direct material?

Multiple Choice

• $0.80.

• $0.60.

• $0.90.

• None of the answers is correct.

• Not enough information to judge.