The following data are given for Stringer Company: Round your intermediate calcu

Question

The following data are given for Stringer Company:

Round your intermediate calculations and final answer to the nearest cent.

The direct materials price variance is

a.$1,804.80 unfavorable

b.$1,804.80 favorable

c.$4,512.00 favorable

d.$4,512.00 unfavorable

Budgeted production 908 units Actual production   1,062 units Materials:     Standard price per ounce $1.90     Standard ounces per completed unit 11     Actual ounces purchased and used in production 12,032     Actual price paid for materials $24,666 Labor:     Standard hourly labor rate $14.96 per hour     Standard hours allowed per completed unit 4.2     Actual labor hours worked 5,469.3     Actual total labor costs $83,407 Overhead:     Actual and budgeted fixed overhead $1,157,000     Standard variable overhead rate $28.00 per standard labor hour     Actual variable overhead costs $153,140 Overhead is applied on standard labor hours.

Explanation / Answer

Actual purchase price = 24666/12032=$ 2.05 Direct materials price variance = 12032*(2.05-1.90)= $1,804.80 unfavorable Option A is correct

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