In June, Indigo Manufacturing Purchased 6,000 Gallons of Blue Dye

Multiple Choice

In June, Indigo Manufacturing purchased 6,000 gallons of blue dye used to produce stone-washed denim clothing.The price per gallon was $1.24 and the company used 5,400 gallons of the dye during the month.The standard price for the dye is $1.26.What is the materials price variance for Indigo for June?

A) $120 unfavorable
B) $120 favorable
C) $108 favorable
D) $108 unfavorable