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 manufacturing labour price variance is:
A)$62.50 unfavourable.
B)$62.50 favourable.
C)$3811.75 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 manufacturing labour price variance is:
A)$62.50 unfavourable.
B)$62.50 favourable.
C)$3811.75 unfavourable.
D)None of these answers are correct.

Quizplus · Accepted Answer

The direct manufacturing labour price variance is calculated as the difference between the actual cost and the standard cost for the actual hours worked. The formula is: (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. In this case, it's ($15.25 - $15.00) x 250 = $0.25 x 250 = $62.50 unfavourable, because the actual cost was higher than the standard cost.

Answer the Following Questions Using the Information Below: Robert Jones

Answer the Following Questions Using the Information Below:
Robert Jones