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The following data are given for Stringer Company: Line Item Description Value Budgeted production 949 units Actual production 1,018 units Materials: Standard price per ounce
The following data are given for Stringer Company:
Line Item Description | Value |
---|---|
Budgeted production | 949 units |
Actual production | 1,018 units |
Materials: | |
Standard price per ounce | $1.75 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 11,534 |
Actual price paid for materials | $23,645 |
Labor: | |
Standard hourly labor rate | $14.40 per hour |
Standard hours allowed per completed unit | 4.5 |
Actual labor hours worked | 5,242.7 |
Actual total labor costs | $79,951 |
Overhead: | |
Actual and budgeted fixed overhead | $1,063,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $146,796 |
Overhead is applied on standard labor hours.
Do not round interim calculations. Round your final answer to the nearest dollar.
The direct materials price variance is
a. $3,460 unfavorable
b. $8,650 unfavorable
c. $3,460 favorable
d. $8,650 favorable
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