accounting 461382

Ravena Labs., Inc. makes a single product which has the following standards:

Direct Materials 2.5 ounces at $20 per ounce

Direct Labor 1.4 hours at $12.50 per hour

Var. Manuf. Overhead 1.4 hours at ? per hour

Variable Manuf. Overhead is applied on the basis of direct labor hours. The following data are available for October:

3750 units of compound were produced during the month.

There were no beginning direct materials inventory

The ending direct materials inventory was 2000 ounces

Direct materials purchased: 12000 ounces for $225,000

Direct labor hours worked: 5600 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 spending variance for October is: