Ravena Labs., Inc. makes a single product which has the following standards: Variable manufacturing overhead is applied on the basis of 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.
• The ending direct materials inventory was 2,000 ounces.
• Direct materials purchased: 12,000 ounces for $225,000.
• 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 direct materials quantity variance for October is:
a. $52,500 unfavorable
b. $52,500 favorable
c. $12,500 unfavorable
d. $12,500 favorable