+ 14. Lopez Corporation has set the following standards for production:

Direct materials: 10 gallons at $1.50 per gallon Direct labor: 2 hours at $4 per hour Lopez did the following:

yy Budgeted fixed costs at $100,000 yy Applies variable overhead at a rate of $2 per direct labor hour yy Produced and sold 5,000 units this year for $75 per unit yy Budgeted to produce and sell 5,500 units this year for $80 per unit yy Purchased and used 55,000 gallons of direct materials for $1.40 per gallon yy Paid $40,000 for 11,000 hours of direct labor yy Spent $25,000 on variable overhead yy Spent $125,000 on fixed overhead Calculate all nine variances and indicate whether they are favorable or unfavorable.