The following data are given for Stringer Company:
Budgeted production 932 units
...
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The following data are given for Stringer Company:
Budgeted production 932 units
Actual production 1,065 units
Materials:
Standard price per ounce $1.79
Standard ounces per completed unit 10
Actual ounces purchased and used in production 10,970
Actual price paid for materials $22,488
Labor:
Standard hourly labor rate $14.96 per hour
Standard hours allowed per completed unit 4.2
Actual labor hours worked 5,484.75
Actual total labor costs $83,642
Overhead:
Actual and budgeted fixed overhead $1,152,000
Standard variable overhead rate $27.00 per standard labor hour
Actual variable overhead costs $153,573
Overhead is applied on standard labor hours.
The direct materials quantity variance is
a.2,851.70 favorable
b.2,851.70 unfavorable
c.572.80 unfavorable
d.572.80 favorable
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