Question: The following data is given for the Stringer Company: Budgeted production 910 units Actual production 1,007 units Materials: Standard price per ounce $1.80 Standard ounces
The following data is given for the Stringer Company:
| Budgeted production | 910 units |
| Actual production | 1,007 units |
| Materials: | |
| Standard price per ounce | $1.80 |
| Standard ounces per completed unit | 11 |
| Actual ounces purchased and used in production | 11,409 |
| Actual price paid for materials | $23,388 |
| Labor: | |
| Standard hourly labor rate | $14.61 per hour |
| Standard hours allowed per completed unit | 4.0 |
| Actual labor hours worked | 5,186.05 |
| Actual total labor costs | $79,087 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,159,000 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $145,209 |
| Overhead is applied on standard labor hours. | |
Round your final answer to the nearest dollar. Do not round interim calculations.
The direct materials price variance is
a.$2,852.25 favorable
b.$7,130.625 unfavorable
c.$7,130.625 favorable
d.$2,852.25 unfavorable
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