Enfield Industries purchased and consumed 61,000 gallons of direct material that was used in the production of 13,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Enfield's accounting records at the end of the period disclosed a material price variance of $6,100U and a material quantity variance of $2,800F, what is the actual price paid for a gallon of direct material? (Do not round intermediate calculations.)

= $0.8 per unit

Explanation:

The question is to determine the Actual price paid for a gallon of direct material

This is answered in the following steps

Step 1) What is the standard Quantity allowed?

= Finished units of products x the manufacturing standard

= 13,000 units x 5 gallons = 65,000

What is the actual quantity consumed = 61,000 gallons

Meaning the Material Quantity variance =

Standard Quantity allowed - Actual Quantity used = 65,000 - 61,000

= 4000

Step 2) Determine the Standard Price

= The disclosed material QUantity Variance/ The determined material Quantity Variance

= 2800F/ 4,000

= 0.7 per unit

Step 3) Determine Material Price Variance

= Actual Quantity (Standard Price - Actual Price

= $6,100u = 61,000 (0.7 - Actual Quantity)

= $0.8 per unit

i think the answer would be b hope this

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