#14

Question 14 Use the following information for Questions 14 through 19; The Andy Bernard Company produces drywall that can withstand a punch being punched into it and has developed the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 14 hours at $12.50 per hour Variable manufacturing overhead: 14 hours at $3,50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October 3,750 units of drywall were produced during the month. There was no beginning direct materials inventory. Direct materials purchased: 12,000 ounces for $225,000 The ending direct materials inventory was 2,000 ounces, Direct labor-hours worked: 5,600 hours at a cost of $67,200. Variable manufacturing overhead costs incurred amounted to $18,200. Variable manufacturing overhead applied to products: $18,375. The materials price variance for October is: $15,000 Unfavorable O $15,000 Favorable $25,000 Unfavorable $25,000 Favorable