Ravena Labs., Inc. makes a single product which has the following standards:Direct materials: 2.5 ounces at $20 per ounceDirect labor: 1.4 hours at $12.50 per hourVariable manufacturing overhead: 1.4 hours at 3.50 per hourVariable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:•3,750 units of compound 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:
A. $1,400 Favorable
B. $1,900 Unfavorable
C. $4,375 Unfavorable
D. $3,750 Favorable
Answer: C
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