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 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for January is:

A) $2,482 Favorable
B) $2,740 Unfavorable
C) $2,482 Unfavorable
D) $2,740 Favorable