Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. In 2019, RII estimated the following standard costs for one of their major products, the 10-litre plastic container.

	Budgeted quantity	Budgeted price
Direct materials	0.10 kilograms	$30 per kilogram
Direct labour	0.05 hours	$15 per hour

During June 2020, RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour. June's direct material rate variance is

Question 26Select one:

a.

$1,000 favourable.

b.

$980 favourable.

c.

$680 favourable.

d.

$980 unfavourable.

e.

$1,000 unfavourable.