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

Question

Business

Kendall Coffey

1 December, 15:09

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

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Preston Benson · Answer 1

Direct material quantity variance = $620.83 unfavorable

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