Use the Information Below to Answer the Following Question(s)

question 131

Multiple Choice

Use the information below to answer the following question(s) .Robb Industries Inc.(RII) , developed standard costs for direct material and direct labour.In 2019, RII estimated the following standard costs for one of their major products, the 10-litre plastic container. During June 2020, RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour.
-June's direct material efficiency variance is

• A)$320 unfavourable.
• B)$300 favourable.
• C)$680 favourable.
• D)$300 unfavourable.
• E)$320 favourable.

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Definitions:

Net Sales

Revenue from sales after deducting returns, allowances for damaged goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered on credit.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expenses.

Recognizing

The process of formally recording or incorporating an item into the financial statements of an entity.