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:

Optimum

The most favorable condition or highest achievable level of efficiency under the given circumstances.

Indifference Curves

Graphical representations in economics that show combinations of goods among which a consumer is indifferent.

Upward-sloping

A term used in economics to describe a curve that represents an increase in one variable as another variable increases, often used in the context of supply curves.

Preferences

Individual choices or tastes regarding various bundles of goods and services.