Question - Courtney 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 Courtney'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, determine the actual price paid for a gallon of direct material.
A. $0.50
B. $0.60
C. $0.70
D. An amount other than those shown above
E. Not enough information to judge