Bryan Company Employs a Standard Cost System in Which Direct

question 210

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 rate variance for March?

• A) $8,000 favourable.
• B) $8,000 unfavourable.
• C) $48,000 favourable.
• D) $48,000 unfavourable.

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Definitions:

Challenging Role

A role that requires a high level of skills, effort, and responsibility, often pushing individuals out of their comfort zones.

Compensation Structure

The systematic layout of how employees are paid, including salaries, bonuses, commissions, and other forms of monetary rewards.

Enhanced Work Performance

Describes improvements in efficiency, productivity, and quality of work output.

A High Sense

implies possessing a deeply felt intuition or understanding of a specific matter or situation.