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Question - Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. In 2019, RII estimated the following standard costs for one of their major products, the 10-litre plastic container.
Budgeted Quantity
Direct Materials: 0.10 kilograms
Direct Labour: 0.05 hours
Budgeted Price
Direct Materials: $30 per kilogram
Direct Labour: $15 per hour
During June 2020, 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.
Required - Calculate the June direct material rate variance?
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