Question 14 Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products Direct materials Direct labor Variable manufacturing overhead 10 pounds * $3 per pound 2.5 hours * $8 per hour 2.5 hours * $2 per hour The following activity occurred during the month of June Materials purchased Materials used: Units produced Direct labor Actual variable manufacturing overhead 125,000 pounds at $2.60 per pound 110,000 pounds 10,000 units 26,000 hours at $7.50 per hour $51,000 The company records materials price variances at the time of purchase The direct labor efficiency variance is $8,000 unfavorable $20,000 unfavorable $8,000 favorable $20,000 favorable