The following data are given for Stringer Company: Budgeted production 914 units Actual production   1,010 units Materials:       Standard price per ounce $1.8     Standard ounces per completed unit 12     Actual ounces purchased and used in production 12,484     Actual price paid for materials $25,592 Labor:       Standard hourly labor rate $14.81 per hour     Standard hours allowed per completed unit 4.5     Actual labor hours worked 5,201.5     Actual total labor costs $79,323 Overhead:       Actual and budgeted fixed overhead $1,118,000     Standard variable overhead rate $27.00 per standard labor hour     Actual variable overhead costs $145,642   Overhead is applied on standard labor hours. The direct materials quantity variance is a.3,120.80 favorable b.3,120.80 unfavorable c.655.20 unfavorable d.655.20 favorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data are given for Stringer Company:

Budgeted production 914 units
Actual production   1,010 units
Materials:  
    Standard price per ounce $1.8
    Standard ounces per completed unit 12
    Actual ounces purchased and used in production 12,484
    Actual price paid for materials $25,592
Labor:  
    Standard hourly labor rate $14.81 per hour
    Standard hours allowed per completed unit 4.5
    Actual labor hours worked 5,201.5
    Actual total labor costs $79,323
Overhead:  
    Actual and budgeted fixed overhead $1,118,000
    Standard variable overhead rate $27.00 per standard labor hour
    Actual variable overhead costs $145,642
 
Overhead is applied on standard labor hours.

The direct materials quantity variance is

a.3,120.80 favorable
b.3,120.80 unfavorable
c.655.20 unfavorable
d.655.20 favorable
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