Sawyer Industries Inc. (SII) developed standard costs for direct material and direct labour. In 2019, SIIestimated the following standard costs for one of their major products, the 30-litre heavy-duty plasticcontainer.BudgetedquantityDirect materialsDirect labour0.20 kilograms0.10 hoursBudgeted price$27 per kilogram$16 per hourDuring July 2020, Sll produced and sold 10,000 containers using 2,200 kilograms of direct materials atan average actual cost per kilogram of $25 and 1,050 direct manufacturing labour hours at an averageactual wage of $15 per hour.July's direct manufacturing labour rate variance isO a. $250.00 favourableO b.$250.00 unfavourableO c. $1050.00 favourableO d. $262.50 unfavourableO e. $487.50 favourable

If the actual rate is more than the standard rate than the rate variance is unfavorable , if however…

Inc. (SII) developed standard costs for direct material and direct labour. In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. Budgeted quantity Direct materials 0.20 kilograms 0.10 hours Budgeted price $27 per kilogram $16 per hour Direct labour During July 2020, SIl produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $25 and 1,050 direct manufacturing labour hours at an average actual wage of $15 per hour. July's direct manufacturing labour rate variance is O a. $250.00 favourable O b. $250.00 unfavourable O c. $1050.00 favourable O d. $262.50 unfavourable $487.50 favourable e.

Inc. (SII) developed standard costs for direct material and direct labour. In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. Budgeted quantity Direct materials 0.20 kilograms 0.10 hours Budgeted price $27 per kilogram $16 per hour Direct labour During July 2020, SIl produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $25 and 1,050 direct manufacturing labour hours at an average actual wage of $15 per hour. July's direct manufacturing labour rate variance is O a. $250.00 favourable O b. $250.00 unfavourable O c. $1050.00 favourable O d. $262.50 unfavourable $487.50 favourable e.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A9
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