Courtney Purchased and Consumed 50,000 Gallons of Direct Material That

Multiple Choice

Courtney purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product.According to engineering specifications,each finished unit had a manufacturing standard of five gallons.If a review of Courtney's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F,determine the actual price paid for a gallon of direct material.

A) $0.50.
B) $0.60.
C) $0.70.
D) An amount other than those shown above.
E) Not enough information to judgE.