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Answer the Following Questions Using the Information Below:
Cootamundra Industries

Question 103

Multiple Choice

Answer the following questions using the information below:
Cootamundra Industries (CI) ,developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container.
 Budgeted quantity  Budgeted price  Direct materials 0.20 kg$26 per kg Direct labour 0.10 hours $14 per hour \begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\\text { Direct materials } & 0.20 \mathrm {~kg} & \$ 26 \text { per } \mathrm { kg } \\\text { Direct labour } & 0.10 \text { hours } & \$ 14 \text { per hour }\end{array} During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour.
-July's direct manufacturing labour price variance is:


A) $700.00 unfavourable.
B) $787.50 unfavourable.
C) $1487.50 favourable.
D) None of these answers are correct.

Correct Answer:

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