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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 940 units Actual
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
Budgeted production | 940 units |
Actual production | 1,023 units |
Materials: | |
Standard price per ounce | $1.89 |
Standard ounces per completed unit | 12 |
Actual ounces purchased and used in production | 12,644 |
Actual price paid for materials | $25,920 |
Labor: | |
Standard hourly labor rate | $14.89 per hour |
Standard hours allowed per completed unit | 4.5 |
Actual labor hours worked | 5,268.45 |
Actual total labor costs | $80,344 |
Overhead: | |
Actual and budgeted fixed overhead | $1,197,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $147,517 |
Overhead is applied on standard labor hours. |
The direct materials quantity variance is
a.$2,022.84 favorable
b.$2,022.84 unfavorable
c.$695.52 unfavorable
d.$695.52 favorable
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