Gipple Corporation makes a product that uses a material with the quantity standard of 8.1 grams per unit of output and the price standard of $6.80 per gram. In January the company produced 4,200 units using 25,670 grams of the direct material. During the month the company purchased 28,200 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

• $6,804 F
• $5,640 U
• $6,804 U
• $5,640 F