Use the Information Below to Answer the Following Question(s)

question 63

Multiple Choice

Use the information below to answer the following question(s) .
Robb Industries Inc. (RII) , developed standard costs for direct material and direct labour. In 2016, RII estimated the following standard costs for one of their major products, the 10-litre plastic container.
During June 2017, RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour.
-June's direct material rate variance is

• A) $980 unfavourable.
• B) $1,000 favourable.
• C) $980 favourable.
• D) $1,000 unfavourable.

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