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