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

question 117

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 2013, RII estimated the following standard costs for one of their major products, the 10-litre plastic container.
During June, 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 manufacturing labour price variance is

• A) neither favourable or unfavourable.
• B) $62.50 favourable.
• C) $128.00 unfavourable.
• D) $62.50 unfavourable.
• E) $128.00 favourable.

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Definitions:

Operating

Pertaining to the ongoing, day-to-day activities necessary for an entity to function, including production, sales, and administrative tasks.

Business Ownership

Business Ownership entails the possession, control, and responsibility over a business entity, including rights to its assets and liabilities.

Corporation

A legal entity that is separate and distinct from its owners, offering Limited liability to its shareholders, and having the ability to raise capital through issuing stock.

Non-profit

A non-profit organization is one that operates for a collective, public or social benefit, rather than to make money for its owners or investors.