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The following data is given for the Stringer Company: Budgeted production 910 units Actual production 1,007 units Materials: Standard price per ounce $1.80 Standard ounces
The following data is given for the Stringer Company:
Budgeted production | 910 units |
Actual production | 1,007 units |
Materials: | |
Standard price per ounce | $1.80 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 11,409 |
Actual price paid for materials | $23,388 |
Labor: | |
Standard hourly labor rate | $14.61 per hour |
Standard hours allowed per completed unit | 4.0 |
Actual labor hours worked | 5,186.05 |
Actual total labor costs | $79,087 |
Overhead: | |
Actual and budgeted fixed overhead | $1,159,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $145,209 |
Overhead is applied on standard labor hours. |
Round your final answer to the nearest dollar. Do not round interim calculations.
The direct materials price variance is
a.$2,852.25 favorable
b.$7,130.625 unfavorable
c.$7,130.625 favorable
d.$2,852.25 unfavorable
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