Answer the Following Questions Using the Information Below:
Cootamundra Industries

question 8

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 manufacturing labour flexible-budget variance is:

• A)$787.50 favourable.
• B)$700.00 unfavourable.
• C)$1487.50 unfavourable.
• D)None of these answers are correct.

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Definitions:

Behaviourism

An approach in psychology focusing on observable behaviors, and discounting mental activities.

Psychoanalytic Theory

A theory developed by Freud that emphasizes unconscious psychological processes and contends that childhood experiences significantly influence adult personality.

Control of Behaviour

The regulation or direction of actions and conduct according to principles or a guiding method.

Unconscious

The part of the mind that contains thoughts, memories, and desires that are not within personal awareness but still influence behavior.