The following data is given for the Stringer Company:
Budgeted production 1,011 units
Actual production 909 units
Materials:
— Standard price per ounce $1.84
— Standard pounds per completed unit 11
— Actual pounds purchased and used in production 9,699
— Actual cost of materials $19,883
Labor:
— Standard hourly labor rate $14.00 per hour
— Standard hours allowed per completed unit 5.0
— Actual labor hours worked 4,681.35
— Actual total labor costs $71,391
Overhead:
— Actual and budgeted fixed overhead $1,135,361 **— Standard variable overhead rate $28.00 per standard labor hour
— Actual variable overhead costs $131,078
— Overhead is applied on standard labor hours.
Determine the direct material price variance. Round your answer to the nearest whole number. Select the correct answer.
a. $1,485 F
b. $3,818 U
c. $552 F
d. $2,037 U