Gipple Corporation Makes a Product That Uses a Material with the Quantity

Multiple Choice

Gipple Corporation makes a product that uses a material with the quantity standard of 9.2 grams per unit of output and the price standard of $7.90 per gram. In January the company produced 5,300 units using 26,770 grams of the direct material. During the month the company purchased 29,300 grams of the direct material at $8.00 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for January is:

A) $4,876 Favorable
B) $2,930 Unfavorable
C) $4,876 Unfavorable
D) $2,930 Favorable