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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