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

question 47

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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:  Standard Quantity  Standard Price  Standard Cost  Direct materials 6.0 grams $3.50/ gram $21.00 Direct labour 1.3 hours $11.00/ hour 14.30$35.30\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.
-The direct labour efficiency variance for March is:


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Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Net Exports

The value of a country's total exports minus the value of its total imports, representing a component of a nation's GDP.

Short Run

A period in which at least one input is fixed, limiting the ability of a firm to adjust all of its inputs to change output.

Unemployment

A situation where individuals who are capable of working and are actively seeking work are unable to find employment.

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