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 | 1,023 units |
| Materials: | |
| Standard price per ounce | $1.89 |
| Standard ounces per completed unit | 12 |
| Actual ounces purchased and used in production | 12,644 |
| Actual price paid for materials | $25,920 |
| Labor: | |
| Standard hourly labor rate | $14.89 per hour |
| Standard hours allowed per completed unit | 4.5 |
| Actual labor hours worked | 5,268.45 |
| Actual total labor costs | $80,344 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,197,000 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $147,517 |
| Overhead is applied on standard labor hours. | |
The direct materials quantity variance is
a.$2,022.84 favorable
b.$2,022.84 unfavorable
c.$695.52 unfavorable
d.$695.52 favorable
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
