Answer the following questions using the information below:
Robert Jones Industries (RJ),developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel.
$$\begin{array} { l l l }
& \text { Budgeted quantity } & \text { Budgeted price } \
\text { Direct materials } & 0.10 \mathrm {~kg} & \$ 30 \text { per } \mathrm { kg } \
\text { Direct labour } & 0.05 \text { hours } & \$ 15 \text { per hour }
\end{array}$$ During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour.
-June's direct material flexible-budget variance is:
A)$980 unfavourable.
B)$300 favourable.
C)$680 unfavourable.
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Robert Jones Industries (RJ),developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel.
 $$\begin{array} { l l l } 
& \text { Budgeted quantity } & \text { Budgeted price } \
\text { Direct materials } & 0.10 \mathrm {~kg} & \$ 30 \text { per } \mathrm { kg } \
\text { Direct labour } & 0.05 \text { hours } & \$ 15 \text { per hour }
\end{array}$$ During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour.
-June's direct material flexible-budget variance is:
A)$980 unfavourable.
B)$300 favourable.
C)$680 unfavourable.
D)None of these answers are correct.

Quizplus · Accepted Answer

The direct material flexible-budget variance is calculated as the difference between the actual cost and the flexible budget cost for the actual quantity of input used. The flexible budget cost for 490 kg of direct materials is 490 kg * $30/kg = $14,700. The actual cost is 490 kg * $32/kg = $15,680. The variance is $15,680 - $14,700 = $980 unfavourable. However, the correct calculation should be based on the actual quantity used (490 kg) and the standard cost ($30/kg), which results in a variance of $980 unfavourable, but due to a mistake in my explanation, the correct answer is not listed as per the provided options.

Answer the Following Questions Using the Information Below: Robert Jones

Answer the Following Questions Using the Information Below:
Robert Jones