Question 28

Reference: 10-01

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:

StandardStandard PriceStandard Cost

Quantity

Direct Materials 6 kilograms $3.50/kilogram $21.00

Direct Labour 1.3 hours $11.00/hour$14.30

$35.30

During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.

What was the direct labour rate variance for March?

Question 28 options:

A)

$8,000 unfavourable.

B)

$8,000 favourable.

C)

$48,000 unfavourable.

D)

$48,000 favourable.