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Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 959 units Actual
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
Budgeted production | 959 units |
Actual production | 1,063 units |
Materials: | |
Standard price per ounce | $1.9 |
Standard ounces per completed unit | 10 |
Actual ounces purchased and used in production | 10,949 |
Actual price paid for materials | $22,445 |
Labor: | |
Standard hourly labor rate | $14.96 per hour |
Standard hours allowed per completed unit | 4.6 |
Actual labor hours worked | 5,474.45 |
Actual total labor costs | $83,485 |
Overhead: | |
Actual and budgeted fixed overhead | $1,186,000 |
Standard variable overhead rate | $27.00 per standard labor hour |
Actual variable overhead costs | $153,285 |
Overhead is applied on standard labor hours. |
The direct materials quantity variance is
a.$1,641.90 favorable
b.$1,641.90 unfavorable
c.$606.10 unfavorable
d.$606.10 favorable
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