Question: The following data are given for Stringer Company: Line Item Description Value Budgeted production 9 1 8 units Actual production 1 , 0 3 1

The following data are given for Stringer Company:
Line Item Description Value
Budgeted production 918 units
Actual production 1,031 units
Materials:
Standard price per ounce $1.97
Standard ounces per completed unit 10
Actual ounces purchased and used in production 10,619
Actual price paid for materials $21,769
Labor:
Standard hourly labor rate $14.53 per hour
Standard hours allowed per completed unit 4.3
Actual labor hours worked 5,309.65
Actual total labor costs $80,972
Overhead:
Actual and budgeted fixed overhead $1,013,000
Standard variable overhead rate $27.00 per standard labor hour
Actual variable overhead costs $148,670
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. $2,124 unfavorable
b. $850 favorable
c. $850 unfavorable
d. $2,124 favorable

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