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16.The following data is given for the Stringer Company:
Budgeted production | 906 units |
Actual production | 1,059 units |
Materials: | |
Standard price per ounce | $1.84 |
Standard ounces per completed unit | 10 |
Actual ounces purchased and used in production | 10,908 |
Actual price paid for materials | $22,361 |
Labor: | |
Standard hourly labor rate | $14.81 per hour |
Standard hours allowed per completed unit | 4.1 |
Actual labor hours worked | 5,453.85 |
Actual total labor costs | $83,171 |
Overhead: | |
Actual and budgeted fixed overhead | $1,002,000 |
Standard variable overhead rate | $25.00 per standard labor hour |
Actual variable overhead costs | $152,708 |
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.$2,290.68 unfavorable
b.$5,726.7 unfavorable
c.$5,726.7 favorable
d.$2,290.68 favorable
Answer & Explanation
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