Use This Information for Stringer Company to Answer the Questions

question 42

Multiple Choice

Use this information for Stringer Company to answer the questions that follow.
​The following data are given for Stringer Company:
​
Overhead is applied on standard labor hours.
-The direct materials price variance is

• A) $22,800 unfavorable
• B) $22,800 favorable
• C) $52,000 unfavorable
• D) $52,000 favorable

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Definitions:

Incremental Cost

The additional cost associated with producing one extra unit of production or conducting an activity.

Direct Labor

The workforce directly involved in manufacturing a product or delivering a service, whose costs are directly attributable to the product.

Variable Manufacturing

Costs in manufacturing that vary with the level of production output, such as raw materials and labor costs.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and depreciation of equipment, excluding direct materials and direct labor.