#16

Question 16 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 standard Direct materials: 2.5 ounces at $20 per oun ounce Direct labor, 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 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 labor rate variance for October is . O $2,625 Favorable $2,625 Unfavorable $2,800 Favorable $2,800 Unfavorable