Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

Multiple Choice

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-Borden Enterprises uses standard costing. For the month of April, the company reported the following data: Standard direct labour rate: $10 per hour
Standard hours allowed for actual production: 8,000
Actual direct labour rate: $9.50 per hour
Labour efficiency variance: $4,800 F
The labour rate variance for April is:

A) $2,850 F.
B) $3,760 U.
C) $3,760 F.
D) $2,850 U.