Answer the Following Questions Using the Information Below:
Robert Jones

question 70

Multiple Choice

Answer the following questions using the information below:
Robert Jones Industries (RJ) ,developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel.
$$\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\\text { Direct materials } & 0.10 \mathrm {~kg} & \$ 30 \text { per } \mathrm { kg } \\\text { Direct labour } & 0.05 \text { hours } & \$ 15 \text { per hour }\end{array}$$ During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour.
-June's direct material efficiency variance is:

• A)$680 favourable.
• B)$300 favourable.
• C)$980 unfavourable.
• D)None of these answers are correct.

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Definitions:

Salary Allowance

A fixed amount of money paid regularly to employees in addition to their normal salary for specific purposes.

Net Income

The total profit of a company after accounting for all costs and expenses, including taxes and interest.

Division

A large section or branch of a company that operates somewhat independently while remaining part of the larger entity.

Final Distribution

The process of allocating the last portion of assets or earnings among shareholders, partners, or other stakeholders after all obligations have been met.