The Andy Bernard Company produces drywall that can withstand a punch being punched into it and has developed the follcving stand. • 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 labor rate variance for October is: O $2,625 Favorable O $2,625 Unfavorable O $2,800 Favorable O $2,800 Unfavorable

The Andy Bernard Company produces drywall that can withstand a punch being punched into it and has developed the follcving stand. • 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 labor rate variance for October is: O $2,625 Favorable O $2,625 Unfavorable O $2,800 Favorable O $2,800 Unfavorable

Name: Question 16Use the following information for Questions 14 through 19:
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Description: Question 16Use 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 follcwing standard• Direct materials: 2.5 ounces at $20 per ounounc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Acounting