Question
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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