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

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Definitions:

Aspartic Acid

Aspartic acid is a nonessential amino acid used in the biosynthesis of proteins, playing roles in the body's metabolic processes and neurotransmission.

MSG

Monosodium glutamate, a flavor enhancer commonly used in food preparation and processed foods.

Microvilli

Tiny, hair-like projections on the surface of some cells that increase surface area for absorption or secretion.

Cilia

Tiny, hair-like structures that protrude from the surface of many cells, playing roles in movement, sensation, and filtration.