Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

question 61

Multiple Choice

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-Borden Enterprises uses standard costing. For the month of April, the company reported the following data: Standard direct labour rate: $10 per hour
Standard hours allowed for actual production: 8,000
Actual direct labour rate: $9.50 per hour
Labour efficiency variance: $4,800 F
The labour rate variance for April is:

• A)$2,850 F.
• B)$3,760 U.
• C)$3,760 F.
• D)$2,850 U.

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Definitions:

European Works Council

A body representing workers that operates at a pan-European level in companies with operations in multiple EU countries, aiming to inform and consult employees on transnational company matters.

Type

Referring to a category or class that shares common characteristics or attributes.

NAALC

The North American Agreement on Labor Cooperation, an agreement aimed at improving labor standards and working conditions in Canada, Mexico, and the United States.

Labor Principles

Fundamental guidelines or standards governing fair and ethical treatment of workers, including rights to organize, fair wages, and safe working conditions.