Cost standards for one unit of product no. C77:Direct material3 pounds at $2.50 per pound$7.50 Direct labor5 hours at $7.50 per hour 37.50 Actual results: Units produced7,800 units Direct material purchased26,000 pounds at $2.70$70,200 Direct material used23,100 pounds at $2.70 62,370 Direct labor40,100 hours at $7.30 292,730 Assume that the company computes variances at the earliest point in time.The direct-material price variance is:
A. $5,200U.
B. $4,620F.
C. $5,200F.
D. $4,620U.
E. None of the answers is correct.
Answer: D
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