Accelerator, Inc. manufactures a fuel additive called surge. The
companyproduces and sells 87,000 containers of surge each month. The company hasestablished the following standards for each container of surge produced: standard quantity standard pricedirect materials 7 gallons $4.00 per gallondirect labor 2.50 hours $14.00 per hourThe following information is available for surge for the month of May:1. 650,000 gallons of chemicals were purchased at a cost of $2,522,000. At May 31, Accelerator, Inc. had 30,000 gallons of chemical available in the storeroom.2. 215,000 direct labor hours were worked during May at a total cost of $3,096,000.Calculate the direct material price variance for May. If the variance isunfavorable, enter a U after your number with a space between the numberand the U (i.e., 10,000 U). If the variance is favorable, enter an F afteryour number with a space between the number and the F (i.e., 10,000 F).Quiz scores will not be adjusted for failing to follow these directions.Do not use decimals or a minus sign in your answer.
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