Arrow Industries Uses a Standard Cost System in Which Direct

question 57

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 materials quantity variance for May is:

• A)$14,400 unfavorable
• B)$1,100 favorable
• C)$17,100 unfavorable
• D)$17,100 favorable

---

Definitions:

Mobilize Resources

The process of organizing and directing assets, materials, and human resources to achieve specific objectives.

Plan Implementation

The process of executing strategies, actions, or tasks as outlined in a plan to achieve specified objectives or goals.

Best Work

Refers to the highest quality of output or performance that an individual or group can produce, often showcasing their skills and dedication.

Command

To direct with specific authority or mandate, often used in contexts where decisions or directives must be followed by others.