Sudecki Inc. purchased and consumed 20,000 gallons of direct…
Sudecki Inc. purchased and consumed 20,000 gallons of direct material that was used in the production of 10,000 finished units of product. According to engineering specifications, each finished unit had a direct material quantity standard of 1.75 gallons. A review of Sudecki’s accounting records at the end of the period disclosed a direct materials price variance of $5,000F and a direct materials quantity variance of $4,000U. Determine the actual price paid per gallon of direct material.