#17

Question 17 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 standar Direct materials: 25 ounces at $20 per ounce Direct labor: 14 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 efficiency variance for October is: $4,375 Unfavorable $4,200 Favorable $4,375 Favorable $4,200 Unfavorable