Question
nswer the following five questions (12-16) using the information below: Rudolph Industries, Inc. (RII), developed standard costs for direct material and direct labor. In 2004,
nswer the following five questions (12-16) using the information below:
Rudolph Industries, Inc. (RII), developed standard costs for direct material and direct labor. In 2004, RII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
| Budgeted quantity | Budgeted price | |
| Direct Materials | 0.10 Pounds | $30 per pound |
| Direct labor | 0.05 hours | $15 per hour |
During June, RII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour.
June's direct material flexible-budget variance is:
| A. | $980 unfavorable | |
| B. | $300 favorable | |
| C. | $680 unfavorable | |
| D. | None of these answers are correct. |
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