Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams of the direct material. During the month the company purchased 27,600 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice O $2,700 F $2,760 U $2,700 U $2,760 F

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams of
the direct material. During the month the company purchased 27,600 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
Multiple Choice
$2,700 F
$2,760 U
$2,700 U
$2,760 F
Transcribed Image Text:Gipple Corporation makes a product that uses a material with the quantity standard of 7.5 grams per unit of output and the price standard of $6.20 per gram. In January the company produced 3,600 units using 25,070 grams of the direct material. During the month the company purchased 27,600 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: Multiple Choice $2,700 F $2,760 U $2,700 U $2,760 F
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