Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per
container and the company produces and sells 80,000 containers per month. The company
has established the following standards for each container of surge produced:
$2.00 per gallon
$8.00 per hour
The following information is available for surge for the month of September:
645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000
gallons were used in the production of surge during September.
94,000 direct labor hours were worked during September at a cost of $759,520.
direct material price variance