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The following data is given for the Stringer Company: Budgeted production 954 units Actual production 1,030 units Materials: Standard price per ounce $1.92 Standard ounces
The following data is given for the Stringer Company:
Budgeted production | 954 units |
Actual production | 1,030 units |
Materials: | |
Standard price per ounce | $1.92 |
Standard ounces per completed unit | 12 |
Actual ounces purchased and used in production | 12,731 |
Actual price paid for materials | $26,099 |
Labor: | |
Standard hourly labor rate | $14.49 per hour |
Standard hours allowed per completed unit | 4.8 |
Actual labor hours worked | 5,304.5 |
Actual total labor costs | $80,894 |
Overhead: | |
Actual and budgeted fixed overhead | $1,031,000 |
Standard variable overhead rate | $25.00 per standard labor hour |
Actual variable overhead costs | $148,526 |
Overhead is applied on standard labor hours. |
The direct materials quantity variance is
a. 1,655.48 favorable
b. 1,655.48 unfavorable
c. 712.32 unfavorable
d. 712.32 favorable
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