Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculator Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 967 units
Calculator
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
Budgeted production | 967 units |
Actual production | 1,025 units |
Materials: | |
Standard price per ounce | $1.79 |
Standard ounces per completed unit | 10 |
Actual ounces purchased and used in production | 10,558 |
Actual price paid for materials | $21,644 |
Labor: | |
Standard hourly labor rate | $14.74 per hour |
Standard hours allowed per completed unit | 5.0 |
Actual labor hours worked | 5,278.75 |
Actual total labor costs | $80,501 |
Overhead: | |
Actual and budgeted fixed overhead | $1,051,000 |
Standard variable overhead rate | $28.00 per standard labor hour |
Actual variable overhead costs | $147,805 |
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.$2,745.08 favorable
b.$6,862.70 unfavorable
c.$2,745.08 unfavorable
d.$6,862.70 favorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started