In: Accounting
The following data is given for the Stringer Company: Budgeted production 954 units Actual production 1,030 units Materials: Standard price per ounce $1.92 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,731 Actual price paid for materials $26,099 Labor: Standard hourly labor rate $14.49 per hour Standard hours allowed per completed unit 4.8 Actual labor hours worked 5,304.5 Actual total labor costs $80,894 Overhead: Actual and budgeted fixed overhead $1,031,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $148,526 Overhead is applied on standard labor hours. The direct materials quantity variance is a. 1,655.48 favorable b. 1,655.48 unfavorable c. 712.32 unfavorable d. 712.32 favorable