Question: The following data is given for the Stringer Company: Budgeted production 912 units Actual production 1,097 units Materials: Standard price per ounce $1.95 Standard ounces
The following data is given for the Stringer Company:
| Budgeted production | 912 units |
| Actual production | 1,097 units |
| Materials: | |
| Standard price per ounce | $1.95 |
| Standard ounces per completed unit | 10 |
| Actual ounces purchased and used in production | 11,299 |
| Actual price paid for materials | $23,163 |
| Labor: | |
| Standard hourly labor rate | $14.19 per hour |
| Standard hours allowed per completed unit | 4.2 |
| Actual labor hours worked | 5,649.55 |
| Actual total labor costs | $86,156 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,081,000 |
| Standard variable overhead rate | $27.00 per standard labor hour |
| Actual variable overhead costs | $158,187 |
| 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. $2,824.75 unfavorable
b. $2,824.75 favorable
c. $1,129.9 favorable
d. $1,129.9 unfavorable
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