Question: The following data are given for Stringer Company: Line Item Description Value Budgeted production 916 units Actual production 1,075 units Materials: Standard price per ounce

The following data are given for Stringer Company:

Line Item Description Value
Budgeted production 916 units
Actual production 1,075 units
Materials:
Standard price per ounce $1.94
Standard ounces per completed unit 12
Actual ounces purchased and used in production 13,287
Actual price paid for materials $27,238
Labor:
Standard hourly labor rate $14.47 per hour
Standard hours allowed per completed unit 4.9
Actual labor hours worked 5,536.25
Actual total labor costs $84,428
Overhead:
Actual and budgeted fixed overhead $1,195,000
Standard variable overhead rate $26.00 per standard labor hour
Actual variable overhead costs $155,015

Overhead is applied on standard labor hours.

Do not round interim calculations. Round your final answer to the nearest dollar.

The direct materials price variance is

a.$1,462 unfavorable

b.$3,654 favorable

c.$3,654 unfavorable

d.$1,462 favorable

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