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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.
Question 1: The materials price variance for January is:
Multiple Choice
Option 1: $6,804 F
Option 2: $5,640 U
Option 3: $6,804 U
Option 4: $5,640 F
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