The following data is given for the stringer Company:
| Budgeted production | 1,035 units |
| Actual production | 916 units |
| Materials: | |
| Standard price per ounce | $1.83 |
| Standard ounces per completed unit | 10 |
| Actual ounces purchased and used in production | 8,885 |
| Actual price paid for materials | $18,214 |
| Labor: | |
| Standard hourly labor rate | $15.00 per hour |
| Standard hours allowed per completed unit | 4.0 |
| Actual labor hours worked | 4,717.4 |
| Actual total labor costs | $71,940 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,107,696 |
| Standard variable overhead rate | $26.00 per standard labor hour |
| Actual variable overhead costs | $132,087 |
| Overhead is applied on standard labor hours. | |
Determine the direct material quantity variance.
Select the correct answer.
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