Answer the Following Questions Using the Information Below:
Cootamundra Industries

question 208

Multiple Choice

Answer the following questions using the information below:
Cootamundra Industries (CI) ,developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container.
$$\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\\text { Direct materials } & 0.20 \mathrm {~kg} & \$ 26 \text { per } \mathrm { kg } \\\text { Direct labour } & 0.10 \text { hours } & \$ 14 \text { per hour }\end{array}$$ During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour.
-July's direct material flexible-budget variance is:

• A)$800 unfavourable.
• B)$5000 unfavourable.
• C)$4400 favourable.
• D)None of these answers are correct.

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