The following data is given for the Stringer Company: Budgeted production 26,000 units Actual production 27,500 units
Question:
The following data is given for the Stringer Company:
Budgeted production | 26,000 units |
Actual production | 27,500 units |
Materials: | |
Standard price per ounce | $6.50 |
Standard ounces per completed unit | 8 |
Actual ounces purchased and used in production | 228,000 |
Actual price paid for materials | $1,504,800 |
Labor: | |
Standard hourly labor rate | $22 per hour |
Standard hours allowed per completed unit | 6.6 |
Actual labor hours worked | 183,000 |
Actual total labor costs | $4,020,000 |
Overhead: | |
Actual and budgeted fixed overhead | $1,029,600 |
Standard variable overhead rate | $24.50 per standard labor hour |
Actual variable overhead costs | $4,520,000 |
Overhead is applied on standard labor hours.
The direct materials quantity variance is
a.52,000 unfavorable
b.22,800 favorable
c.22,800 unfavorable
d.52,000 favorable
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker