The following data are given for Stringer Company:

Budgeted production 932 units
Actual production 1,065 units
Materials:
Standard price per ounce $1.79
Standard ounces per completed unit 10
Actual ounces purchased and used in production 10,970
Actual price paid for materials $22,488
Labor:
Standard hourly labor rate $14.96 per hour
Standard hours allowed per completed unit 4.2
Actual labor hours worked 5,484.75
Actual total labor costs $83,642
Overhead:
Actual and budgeted fixed overhead $1,152,000
Standard variable overhead rate $27.00 per standard labor hour
Actual variable overhead costs $153,573
Overhead is applied on standard labor hours.

The direct materials quantity variance is

a.2,851.70 favorable
b.2,851.70 unfavorable
c.572.80 unfavorable
d.572.80 favorable

Respuesta :

Answer:

c.572.80 unfavorable

Explanation:

The computation of the direct material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $1.79 × (1,065 units × 10 - 10,970)

= $1.79 × (10,650 - $10,970)

= $1.79 × 320

= $572.80 unfavorable

Since the actual quantity is more than the standard quantity so in this case it is unfavorable variance

We simply applied the above formula to find out the material quantity variance