The following data is given for the Stringer Company: Budgeted production Actual

Question

The following data is given for the Stringer Company: Budgeted production Actual production Materials: 905 units 1,078 units $1.91 Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production 12,214 Actual price paid for materials Labor $25,039 $14.45 per hour Standard hourly labor rate Standard hours allowed per completed unit 5,551.7 $84,663 Actual labor hours worked Actual total labor costs Overhead: Actual and budgeted fixed overhead $1,088,000 $28.00 per standard labor hour $155,448 Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours Round your intermediate calculations and final answer to the nearest cent. The direct materials price variance is $4,274.90 unfavorable $1,709.96 favorable $1,709.96 unfavorable $4,274.90 favorable

Explanation / Answer

Ans. Option 3rd     $1709.96 unfavorable. *Calculation: Direct material price variance = (Standard price - Actual price) * Actual Quantity (1.91 - 2.05) * 12214 -1709.96 *Actual price = Actual cost / Actual quantity 25039 / 12214 2.05

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.