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:

Earth's Crust

The outermost solid shell of the planet, known for being the layer on which we live and where most geological events occur.

Synthetic Substances

Artificial materials created through chemical processes, not found naturally.

Coal

A natural, black or brownish-black sedimentary rock used primarily as a fuel source in electricity generation and steel production.

Petroleum

A liquid mixture of hydrocarbons that is present in certain rock strata and can be extracted and refined to produce fuels including gasoline, kerosene, and diesel oil.