Discuss developed standard costs for direct material

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Robb Industries Inc.(RII), developed standard costs for direct material and direct labour. In2013, RII estimated the following standard costs for one of their majorproducts, the 10minus-litre plastic container.

Budgeted quantity Budgeted price
Direct materials 0.10 kilograms $30 per kilogram
Direct labour 0.05 hours $15 per hour

During June, RII produced and sold5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of$32 and 250 direct manufacturing labourminus-hours at an average actual wage of$15.25 per hour.

June's direct manufacturing labour price variance is

A. $128.00 favourable. 

B. $62.50 unfavourable. 

C. $62.50 favourable. 

D. neither favourable or unfavourable.

E. $128.00 unfavourable

Reference no: EM131805280

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