Bryan Company Employs a Standard Cost System in Which Direct

question 50

Multiple Choice

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:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials 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 kilograms of direct materials and 32,000 direct labour hours.



-What was the direct materials quantity variance for March?

• A) $3,500 favourable.
• B) $3,500 unfavourable.
• C) $52,500 favourable.
• D) $52,500 unfavourable.

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Definitions:

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The amount of money expended by individuals, businesses, or governments on goods and services.

Income

Cash inflows that occur on a routine basis, originating from employment or investing.

Resources

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Lower-Income Individuals

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