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Direct material purchased and used, 80,000 gallonsStandard quantity of direct material allowed for May production, 76,000 gallonsActual cost of direct materials purchased and used, $176,000Unfavorable direct-material quantity variance, $9,400
The direct-material price variance is:
A. $11,400FB. $11,400UC. $12,000FD. $12,000UE. none of the above
Shifting the focus slightly, think about this. How would you allocate the cost of a dinner among a group of your friends when you go out for an evening?
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