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Gipple Corporation makes a product that uses a material with the quantity standard of 8.2 grams per unit of output and the price standard of
Gipple Corporation makes a product that uses a material with the quantity standard of 8.2 grams per unit of output and the price standard of $6.90 per gram. In January the company produced 4,300 units using 25,770 grams of the direct material. During the month the company purchased 28,300 grams of the direct material at $7.00 per gram. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
Multiple Choice
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$2,830 U
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$3,526 U
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$2,830 F
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$3,526 F
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