The following data is given for the Stringer Company: Overhead is applied on standard labor hours. Round your intermediate calculations and final answer to the nearest cent. The direct materials price variance is $2,145.76 unfavorable $5,364.40 favorable $2.145.76 favorable $5,364.40 unfavorable
Expert Answer
Direct material Price Variance = ( standard price per pound − Actual price per pound ) × Actual quantity
=$1.89-$27,493/13,411)*13,411
=$1.89-$2.05)*13,411
=$2,145.76 Unfavorable.
So the option is A.$2,145.76 Unfavorable.