Enrique Industries purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Enrique's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F, what is the actual price paid for a gallon of direct material

$0.7 = actual price

Explanation:

First, we need to calculate the standard price using the direct material quantity variance:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

3,000 = (11,000*5 - 50,000)*standard price

3,000 = 55,000standard price - 50,000standard price

3,000/5,000 = standard price

$0.6= standard price per gallon

To calculate the actual price paid per gallon, we need to use the direct material price variance:

Direct material price variance= (standard price - actual price)*actual quantity

-5,000 = (0.6 - actual price)*50,000

-5,000 = 30,000 - 50,000actual price

-35,000 = -50,000actual price

$0.7 = actual price

24 years, i believe is the correct answer.