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

Question

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

Quizplus · Accepted Answer

The direct materials price variance is calculated as (Actual Price - Standard Price) x Actual Quantity. The given variance is $22,800 unfavorable, indicating that the actual price was higher than the standard price.

Use This Information for Stringer Company to Answer the Questions