Question: The following data is given for the Stringer Company: Budgeted production 975 units Actual production 1,019 units Materials: Standard price per ounce $1.93 Standard ounces
The following data is given for the Stringer Company:
| Budgeted production | 975 units |
| Actual production | 1,019 units |
| Materials: | |
| Standard price per ounce | $1.93 |
| Standard ounces per completed unit | 11 |
| Actual ounces purchased and used in production | 11,545 |
| Actual price paid for materials | $23,667 |
| Labor: | |
| Standard hourly labor rate | $14.69 per hour |
| Standard hours allowed per completed unit | 5.0 |
| Actual labor hours worked | 5,247.85 |
| Actual total labor costs | $80,030 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,091,000 |
| Standard variable overhead rate | $27.00 per standard labor hour |
| Actual variable overhead costs | $146,940 |
| 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.$1,385.4 unfavorable
b.$3,463.5 unfavorable
c.$3,463.5 favorable
d.$1,385.4 favorable
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