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Gipple Corporation makes a product that uses a material with the quantity standard of 8.5 grams per unit of output and the price standard of
Gipple Corporation makes a product that uses a material with the quantity standard of 8.5 grams per unit of output and the price standard of $7.20 per gram. In January the company produced 4,600 units using 26,070 grams of the direct material. During the month the company purchased 28,600 grams of the direct material at $7.30 per gram. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
Multiple Choice
$2,860 U
$3,910 U
$3,910 F
$2,860 F
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