Young Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $ 223 per board. This includes 40 pounds of direct materials, at the budgeted price of $ 2 per pound, and 10 hours of direct manufacturing labor, at the budgeted rate of $ 14.30 per hour. Following are additional data for the month of July:

Units completed …………… 5,500 units

Direct material purchases ……….160,000 pounds

Cost of direct material purchases …….$ 432,000

Actual direct manufacturing labor-hours ……41,000 hours

Actual direct labor cost ……….$ 594,500

Direct materials efficiency variance ……$ 1,700 F

There were no beginning inventories.



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