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The following data is given for the Stringer Company: Budgeted production 912 units Actual production 1,097 units Materials: Standard price per ounce $1.95 Standard ounces
The following data is given for the Stringer Company:
Budgeted production | 912 units |
Actual production | 1,097 units |
Materials: | |
Standard price per ounce | $1.95 |
Standard ounces per completed unit | 10 |
Actual ounces purchased and used in production | 11,299 |
Actual price paid for materials | $23,163 |
Labor: | |
Standard hourly labor rate | $14.19 per hour |
Standard hours allowed per completed unit | 4.2 |
Actual labor hours worked | 5,649.55 |
Actual total labor costs | $86,156 |
Overhead: | |
Actual and budgeted fixed overhead | $1,081,000 |
Standard variable overhead rate | $27.00 per standard labor hour |
Actual variable overhead costs | $158,187 |
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. $2,824.75 unfavorable
b. $2,824.75 favorable
c. $1,129.9 favorable
d. $1,129.9 unfavorable
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