Cost 9 - $17,100 Correct Answer: $17,100 Response Feedback:...

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Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. Standard Standard Standard Quantity Price Cost Direct Materials 8 pounds $1.80 per pound $14.40 Direct Labor .25 hour $8.00 per hour $2.00 $16.40 During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours. What is the direct materials price variance for November? Answer Selected Answer: $14,250 Correct Answer: $16,000 Response Feedback: [(304,000/160,000) - $1.80] 160,000 = $16,000 unfavorable Question 2 0 out of 0 points What is the direct materials efficiency (quantity) variance for November? Answer Selected Answer:
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Unformatted text preview: $17,100 Correct Answer: $17,100 Response Feedback: Question 3 0 out of 0 points Is the direct materials efficiency (quantity) variance favorable or unfavorable? Answer Selected Answer: favorable Correct Answer: favorable Response Feedback: Question 4 0 out of 0 points What is the direct labor price (rate) variance for November? Answer Selected Answer: $2,200 Correct Answer: $2,200 Response Feedback: Question 5 0 out of 0 points Is the direct labor price (rate) variance favorable or unfavorable? Answer Selected Answer: favorable Correct Answer: favorable Response Feedback: Question 6 0 out of 0 points What is the direct labor efficiency variance for November? Answer Selected Answer: $2,000 Correct Answer: $2,000 Response Feedback: Question 7 0 out of 0 points Is the direct labor efficiency variance favorable or unfavorable? Answer Selected Answer: favorable Correct Answer: unfavorable Response Feedback:...
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Cost 9 - $17,100 Correct Answer: $17,100 Response Feedback:...

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