Soloman Corporation Recently Purchased 25,000 Gallons of Direct Material at $5.60

Multiple Choice

Soloman Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as:

A) $800F.
B) $9,200F.
C) $9,200U.
D) $10,000F.
E) $10,000U.