Enrique Industries purchased and consumed 77,000 gallons of direct material that was used in the production of 16,000 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 $7,700U and a material quantity variance of $2,100F, what is the actual price paid for a gallon of direct material?

Multiple Choice

• $0.70.

• $0.50.

• $0.80.

• None of the answers is correct.

• Not enough information to judge.