Bryan Company Employs a Standard Cost System in Which Direct

question 49

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 labour efficiency variance for March?

• A) $5,500 favourable.
• B) $5,500 unfavourable.
• C) $5,625 favourable.
• D) $5,625 unfavourable.

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Definitions:

Hasty Generalization

A logical fallacy that involves making broad conclusions based on insufficient or biased evidence.

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A series of statements or reasons presented to persuade others that an assertion is true or valid.

Oak

A genus of trees and shrubs known for their strength, longevity, and distinctive leaves and acorns.

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Deciduous trees belonging to the genus Acer, known for their distinctive leaf shapes and the production of maple syrup and timber.