Gipple Corporation makes a product that uses a material with the quantity standard of 8.9 grams per unit of output and the price standard of $7.60 per gram. In January the company produced 5,000 units using 26,470 grams of the direct material. During the month the company purchased 29,000 grams of the direct material at $7.70 per gram. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for January is:

Multiple Choice

• $4,450 F
• $2,900 U
• $4,450 U
• $2,900 F