Bread Company Has Developed the Following Standards for One of Its

question 63

Multiple Choice

Bread Company has developed the following standards for one of its products. $\begin{array}{ll}\text { Direct materials: } & 10 \text { kilograms } \times \$ 3 \text { per kilogram } \\\text { Direct labour: } & 2.5 \text { hours } \times \$ 8 \text { per hour } \\\text { Variable manufacturing overhead: } & 2.5 \text { hours } \times \$ 2 \text { per hour }\end{array}$


$\begin{array}{ll}\text { The following activity occurred during the month of June }\\\text { Materials purchased: } & 125,000 \text { kilograms at } \$ 2.60 \text { per } \\& \text { kilogram } \\\text { Materials used: } & 110,000 \text { kilograms } \\\text { Units produced: } & 10,000 \text { units } \\\text { Direct labour: } & 24,000 \text { hours at } \$ 7.50 \text { per hour } \\\text { Actual variable manufacturing overhead: } & \$ 51,000\end{array}$ The company records materials price variances at the time of purchase.
What is the direct labour rate variance?

• A)$8,000 unfavourable
• B)$8,000 favourable
• C)$12,000 unfavourable
• D)$12,000 favourable

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Definitions:

Lamp

A device that produces light from electricity, typically used for illumination purposes in homes, offices, and outdoor spaces.

Inseparability

A characteristic of services indicating that they are produced and consumed at the same time, making the quality of service delivery directly linked to the service provider.

Co-Create

A collaborative process where consumers and companies work together to design, build, or develop new products or services.

Service Provider

An individual or company that offers specialized services to consumers or businesses in a specific area, such as telecommunications, education, or healthcare.