Question: Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 940 units Actual
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
| Budgeted production | 940 units |
| Actual production | 1,095 units |
| Materials: | |
| Standard price per ounce | $1.85 |
| Standard ounces per completed unit | 10 |
| Actual ounces purchased and used in production | 11,279 |
| Actual price paid for materials | $23,122 |
| Labor: | |
| Standard hourly labor rate | $14.37 per hour |
| Standard hours allowed per completed unit | 4.9 |
| Actual labor hours worked | 5,639.25 |
| Actual total labor costs | $85,999 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,017,000 |
| Standard variable overhead rate | $24.00 per standard labor hour |
| Actual variable overhead costs | $157,899 |
| Overhead is applied on standard labor hours. | |
Round your intermediate calculations and final answer to the nearest cent.
The direct materials price variance is
a.$2,255.80 unfavorable
b.$2,255.80 favorable
c.$5,639.50 favorable
d.$5,639.50 unfavorable
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