Question
Robb Industries Inc.(RII), developed standard costs for direct material and direct labour. In 2021, RII estimated the following standard costs for one of their majorproducts,
Robb Industries Inc.(RII), developed standard costs for direct material and direct labour. In 2021, RII estimated the following standard costs for one of their majorproducts, the10-litre plastic container.
Budgeted quantity
Budgted price
Direct materials
0.10 kilograms
$30 per kilogram
Direct labour
0.05 hours
$15 per hour
During June 2022, 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 manufacturinglabour-hours at an average actual wage of$15.25 per hour.
June's direct material efficiency variance is_______.
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