Question
Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. In 2016, RII estimated the following standard costs for one of their
Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. In 2016, 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 2017, 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 manufacturing labour rate variance is Select one: a. $62.50 favourable b. $128.00 favourable. c. $62.50 unfavourable. d. neither favourable or unfavourable. e. $128.00 unfavourable.
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