Reed's recently purchased 30,000 gallons of direct material at $5.80 per gallon. Usage by the end of the period amounted to 28,000 gallons. If the standard cost is $6.60 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as:

Multiple Choice

• $24,000F.

• $22,400F.

• $24,000U.

• $1,600F.

• $22,400U.