Reference no: EM132608247

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:

Standard           Standard Price                     Standard Cost

Quantity

Direct Materials  6 kilograms $3.50/kilogram           $21.00

Direct Labour        1.3 hours $11.00/hour           $14.30

                                                                   $35.30

During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.

Problem 1: What was the direct labour rate variance for March?

A) $8,000 unfavourable.

B) $8,000 favourable.

C) $48,000 unfavourable.

D) $48,000 favourable.