Question

The following data are given for Stringer Company: Budgeted production 943 units Actual production 1,038 units Materials: Standard price per ounce $1.81 Standard ounces per completed unit 11 Actual ounces purchased and used in production 11,761 Actual price paid for materials $24,110 Labor: Standard hourly labor rate $14.32 per hour Standard hours allowed per completed unit 4.8 Actual labor hours worked 5,345.7 Actual total labor costs $81,522 Overhead: Actual and budgeted fixed overhead $1,175,000 Standard variable overhead rate $24.00 per standard labor hour Actual variable overhead costs $149,680 Overhead is applied on standard labor hours. The direct materials quantity variance is

Answer 1

Direct material quantity variance= $620.83 unfavorable

Step-by-step explanation:

Giving the following information:

Budgeted production 943 units Actual production 1,038 units

Materials:

Standard price per ounce $1.81 Standard ounces per completed unit 11

Actual ounces purchased and used in production 11,761 Actual price paid for materials $24,110

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (11,418 - 11,761)*1.81= $620.83 unfavorable