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The Following Data Is Given for the Stringer Company

question 62

Multiple Choice

The following data is given for the Stringer Company: The following data is given for the Stringer Company:   Overhead is applied on standard labor hours. The direct material price variance is: A)  22,800U B)  22,800F C)  52,000U D)  52,000F Overhead is applied on standard labor hours.
The direct material price variance is:

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Definitions:

Consigned Goods

Items that are sent by their manufacturer to a third party, but still remain the property of the manufacturer until sold.

Goods in Transit

Items that have been shipped by a seller but have not yet been received by the buyer.

Days' Sales in Inventory

A measure of how quickly inventory is sold and replaced over a period, calculated by dividing the ending inventory by the cost of goods sold and multiplying by 365.

Year 2

Typically refers to the second year in a given time frame or study period, often used in financial analysis, forecasts, or planning scenarios.

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