Question: The following data is given for the Stringer Company: Budgeted production 928 units Actual production 1,067 units Materials: Standard price per ounce $1.87 Standard ounces
The following data is given for the Stringer Company:
| Budgeted production | 928 units |
| Actual production | 1,067 units |
| Materials: | |
| Standard price per ounce | $1.87 |
| Standard ounces per completed unit | 10 |
| Actual ounces purchased and used in production | 10,990 |
| Actual price paid for materials | $22,529 |
| Labor: | |
| Standard hourly labor rate | $14.12 per hour |
| Standard hours allowed per completed unit | 4.2 |
| Actual labor hours worked | 5,495.05 |
| Actual total labor costs | $83,800 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,036,000 |
| Standard variable overhead rate | $28.00 per standard labor hour |
| Actual variable overhead costs | $153,861 |
| Overhead is applied on standard labor hours. | |
The direct materials quantity variance is
a.1,977.70 favorable
b.1,977.70 unfavorable
c.598.40 unfavorable
d.598.40 favorable
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