Gipple Corporation makes a product that uses a material with the quantity standard of 8.3 grams per unit of output and the price standard of $7.00 per gram. In January the company produced 4,400 units using 25,870 grams of the direct material. During the month the company purchased 28,400 grams of the direct material at $7.20 per gram. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for January is:

Multiple Choice

• $7,304 F

• $5,680 U

• $7,304 U

• $5,680 F