Answer the Following Questions Using the Information Below:
Cootamundra Industries

question 84

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 price variance is:

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

---

Definitions:

Depreciation

The process through which assets lose value over time, often due to wear and tear or obsolescence.

Gross Investment

The total amount of money spent on new capital assets, before accounting for depreciation.

Capital Stock

The total amount of physical assets a company owns that can be used in the production of goods and services, including buildings, machinery, and equipment.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or a decline in value.