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Kona Inc. manufactures sea kayaks. The standard cost of direct materials and direct manufacturing labour is $159 per kayak. This includes 18 pounds of direct

Kona Inc. manufactures sea kayaks. The standard cost of direct materials and direct manufacturing labour is $159 per kayak. This includes 18 pounds of direct materials, at the budgeted price of $3.00 per pound and 4.25 hours of direct manufacturing labour, at the budgeted rate of $15 per hour. Following are additional data for the current month:

Units completed 6,000 kayaks

Direct materials purchased: 115,000 pounds

Cost of direct material purchases: $300,500

Actual direct manufacturing labour-hours: 27,000 hours

Actual direct-labour costs: $379,000

Direct materials efficiency variance: $10,250 F

There are no beginning inventories.

Calculate the direct manufacturing labour price variance.

Question 4 options:

A)

26,000 F

B)

22,500 U

C)

10,250 F

D)

42,500 U

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