The following data are given for Stringer Company: Budgeted production 940 units Actual production 1,023 units Materials: Standard price per ounce $1.89 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,644 Actual price paid for materials $25,920 Labor: Standard hourly labor rate $14.89 per hour Standard hours allowed per completed unit 4.5 Actual labor hours worked 5,268.45 Actual total labor costs $80,344 Overhead: Actual and budgeted fixed overhead $1,197,000 Standard variable overhead rate $26.00 per standard labor hour Actual variable overhead costs $147,517 Overhead is applied on standard labor hours. The direct materials quantity variance is a.$2,022.84 favorable b.$2,022.84 unfavorable c.$695.52 unfavorable d.$695.52 favorable
The following data are given for Stringer Company: Budgeted production 940 units Actual production 1,023 units Materials: Standard price per ounce $1.89 Standard ounces per completed unit 12 Actual ounces purchased and used in production 12,644 Actual price paid for materials $25,920 Labor: Standard hourly labor rate $14.89 per hour Standard hours allowed per completed unit 4.5 Actual labor hours worked 5,268.45 Actual total labor costs $80,344 Overhead: Actual and budgeted fixed overhead $1,197,000 Standard variable overhead rate $26.00 per standard labor hour Actual variable overhead costs $147,517 Overhead is applied on standard labor hours. The direct materials quantity variance is a.$2,022.84 favorable b.$2,022.84 unfavorable c.$695.52 unfavorable d.$695.52 favorable
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 9P: USD Inc. has established the following standard cost per unit:
Although 10,000 units were budgeted,...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Use this information for Stringer Company to answer the question that follow.
The following data are given for Stringer Company:
| Budgeted production | 940 units |
| Actual production | 1,023 units |
| Materials: | |
| Standard price per ounce | $1.89 |
| Standard ounces per completed unit | 12 |
| Actual ounces purchased and used in production | 12,644 |
| Actual price paid for materials | $25,920 |
| Labor: | |
| Standard hourly labor rate | $14.89 per hour |
| Standard hours allowed per completed unit | 4.5 |
| Actual labor hours worked | 5,268.45 |
| Actual total labor costs | $80,344 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,197,000 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $147,517 |
| Overhead is applied on standard labor hours. |
The direct materials quantity variance is
a.$2,022.84 favorable
b.$2,022.84 unfavorable
c.$695.52 unfavorable
d.$695.52 favorable
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