Arrow Industries Employs a Standard Cost System in Which Direct

question 7

Multiple Choice

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. 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?

• A)$14,250.
• B)$14,400.
• C)$16,000.
• D)$17,100.

Calculate opportunity cost and understand its role in determining comparative advantage.

Recognize the benefits of specialization and trade for countries involved.

Analyze scenarios to determine which country has a comparative or absolute advantage in the production of specific goods.

Apply the theory of comparative advantage to solve problems related to international trade.

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Definitions:

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom and involved in chemical bonding and electricity.

Positive Charge

A type of electric charge, typically carried by protons, that repels other positively charged particles and attracts negatively charged particles.

Negative Charge

An electrical charge that results from having more electrons than protons in an atom or molecule.

Molecule

The smallest unit of a chemical compound that retains its chemical properties, consisting of two or more atoms bonded together.