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17.
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
| Budgeted production | 969 units |
| Actual production | 1,009 units |
| Materials: | |
| Standard price per ounce | $1.95 |
| Standard ounces per completed unit | 12 |
| Actual ounces purchased and used in production | 12,471 |
| Actual price paid for materials | $25,566 |
| Labor: | |
| Standard hourly labor rate | $14.25 per hour |
| Standard hours allowed per completed unit | 4.6 |
| Actual labor hours worked | 5,196.35 |
| Actual total labor costs | $79,244 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,154,000 |
| Standard variable overhead rate | $28.00 per standard labor hour |
| Actual variable overhead costs | $145,498 |
| Overhead is applied on standard labor hours. |
Round your intermediate calculations and final answer to the nearest cent.
The direct materials price variance is
a.$1,247.10 favorable
b.$3,117.75 unfavorable
c.$3,117.75 favorable
d.$1,247.10 unfavorable
Answer & Explanation
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