Answer the Following Questions Using the Information Below:
Robert Jones

question 183

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 price variance is:

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

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