Question: The following data are given for Stringer Company: Line Item Description Value Budgeted production 949 units Actual production 1,018 units Materials: Standard price per ounce
The following data are given for Stringer Company:
| Line Item Description | Value |
|---|---|
| Budgeted production | 949 units |
| Actual production | 1,018 units |
| Materials: | |
| Standard price per ounce | $1.75 |
| Standard ounces per completed unit | 11 |
| Actual ounces purchased and used in production | 11,534 |
| Actual price paid for materials | $23,645 |
| Labor: | |
| Standard hourly labor rate | $14.40 per hour |
| Standard hours allowed per completed unit | 4.5 |
| Actual labor hours worked | 5,242.7 |
| Actual total labor costs | $79,951 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,063,000 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $146,796 |
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. $3,460 unfavorable
b. $8,650 unfavorable
c. $3,460 favorable
d. $8,650 favorable
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
