Question: please workout and explain steps and why its unfavorable or favorable The following data are given for Stringer Company: Budgeted production 26,000 units Actual production
The following data are given for 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 total 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. $22,800 favorable X b. $22,800 unfavorable c. 552.000 unfavorable d. $52.000 favorable
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