Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Quality System For The Defense Industry

Authors: Charles B. Robinson

1st Edition

0873890787, 978-0873890786

More Books

Students also viewed these Accounting questions