Arrow Industries Employs a Standard Cost System in Which Direct

question 55

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 labor price (rate) variance for November?

• A)$1,800.
• B)$1,900.
• C)$2,000.
• D)$2,090.
• E)$2,200.

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Definitions:

Antagonist

In pharmacology, a substance that blocks or dampens a biological response by binding to and inhibiting the effect of an agonist (the substance that would normally induce that response).

Receptor Sites

Specific locations on the surface of a cell or within the central nervous system where neurotransmitters bind to trigger a response.

Sleep

A naturally recurring state of rest for the mind and body, characterized by altered consciousness and reduced sensory and muscle activity.

Mood

A temporary state of mind or feeling that can affect an individual's perception, behavior, and cognitive functions.