Arrow Industries Uses a Standard Cost System in Which Direct

question 116

Multiple Choice

Arrow Industries uses 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. During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total direct labor wages for May were $37,800. Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor-hours.
-The direct labor rate variance for May is:

• A)$2,200 favorable
• B)$1,900 unfavorable
• C)$2,000 unfavorable
• D)$2,090 favorable

---

Definitions:

Customer Benefit Plan

A strategic approach in sales that outlines how a product or service specifically meets the needs and expectations of a customer, highlighting the advantages and value it provides.

Sales Call Planning

The process of preparing to approach a prospect attempting to make a sale.

Closing The Deal

The final step in a sales process where terms are agreed upon, and the transaction is completed.

Customer Profile

A detailed description of a business's typical or ideal customers, including demographics, buying habits, and preferences, used to tailor marketing and sales efforts.