Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data are given for Stringer Company: Budgeted production 908 units Actual production 1,062 units Materials: Standard price per ounce $1.90 Standard ounces per
The following data are given for Stringer Company:
Budgeted production | 908 units |
Actual production | 1,062 units |
Materials: | |
Standard price per ounce | $1.90 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 12,032 |
Actual price paid for materials | $24,666 |
Labor: | |
Standard hourly labor rate | $14.96 per hour |
Standard hours allowed per completed unit | 4.2 |
Actual labor hours worked | 5,469.3 |
Actual total labor costs | $83,407 |
Overhead: | |
Actual and budgeted fixed overhead | $1,157,000 |
Standard variable overhead rate | $28.00 per standard labor hour |
Actual variable overhead costs | $153,140 |
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.$1,804.80 unfavorable
b.$1,804.80 favorable
c.$4,512.00 favorable
d.$4,512.00 unfavorable
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