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Robb Industries Inc.(RII), developed standard costs for direct material and direct labour. In2013, RII estimated the following standard costs for one of their majorproducts, the

Robb Industries Inc.(RII), developed standard costs for direct material and direct labour. In2013, RII estimated the following standard costs for one of their majorproducts, the 10minuslitre plastic container.

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

DuringJune, RII produced and sold5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of$32 and 250 direct manufacturing labourminushours at an average actual wage of$15.25 per hour.

June's direct manufacturing labour price variance is

A. $128.00 favourable. B. $62.50 unfavourable. C. $62.50 favourable. D. neither favourable or unfavourable. E. $128.00 unfavourable

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