Consider the Following Information: Direct Material Purchased and Used: 80,000

question 4

Multiple Choice

Consider the following information: Direct material purchased and used: 80,000 gallons
Standard quantity of direct material allowed for May production: 76,000 gallons
Actual cost of direct materials purchased and used: $176,000
Unfavourable direct-material quantity variance: $9,400
The direct-material price variance is:

• A)$9,400U.
• B)$11,400F.
• C)$11,400U.
• D)$12,000F.
• E)$12,000U.

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