Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is a.$1,686 favorable b.$4,214 unfavorable c.$4,214 favorable d.$1,686 unfavorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question Content Area
The following data are given for Stringer Company:
Budgeted production 906 units Actual production 1,049 units Materials: Standard price per ounce $1.92 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,966 Actual price paid for materials $26,580 Labor: Standard hourly labor rate $14.85 per hour Standard hours allowed per completed unit 4.1 Actual labor hours worked 5,402.35 Actual total labor costs $82,386 Overhead: Actual and budgeted fixed overhead $1,155,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $151,266 Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar.
The direct materials price variance is
a.$1,686 favorableb.$4,214 unfavorablec.$4,214 favorabled.$1,686 unfavorable
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