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Calhoun Company has a direct material standard of 3 gallons of input at a cost of $5 per gallon. During July, Calhoun Company purchased and used 7,500 gallons. The direct material quantity variance was $750 unfavorable and the direct material price variance was $3,000 favorable. What price per gallon was paid for the purchases?
a. $5.00
b. $5.40
c. $4.60
d. $2.50
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