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Courtney purchased and consumed 56,000 gallons of direct material that was used in the production of 15,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of four gallons. If a review of Courtney's accounting records at the end of the period disclosed a material price variance of $5,600U and a material quantity variance of $2800.0F, determine the actual price paid for a gallon of direct material. (Do not round intermediate calculations.)
a) $0.70.
b) $0.50.
c) $0.80.
d) None of these.
e) Not enough information to judge.
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