#18

Question 18 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 standa Direct materials: 2.5 ounces at $20 per 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 variable overhead price variance for October is: $2,800 Unfavorable $1,400 Unfavorable $2,800 Favorable $1,400 Favorable