The Following Material Budgets Have Been Developed for the Criders

Multiple Choice

The following material budgets have been developed for the Criders Company. $\begin{array}{ll}\text { Price per pound } & \$ 6.50 \\\text { Pounds per unit } & 1 \\\text { Purchase price variance } & \$ 3,200 \text { unfavorable }\end{array}$ If the company purchased 16,000 units, the actual price per pound of material purchased must have been:

A) $6.70
B) $5.00
C) $6.30
D) $5.80