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

question 260

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 manufacturing labour rate variance is

• A) $62.50 favourable.
• B) $128.00 unfavourable.
• C) $62.50 unfavourable.
• D) $128.00 favourable.

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Definitions:

Product Cost

Product cost refers to the total costs incurred to create a product, including direct labor, direct materials, and allocated overhead expenses, crucial for pricing and profitability analysis.

Unit Costs

The total expense incurred to produce, store, and sell one unit of a product or service.

Variable Costing

An accounting approach that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overheads.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.