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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
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. |
Standard Quantity | Standard price | Standard cost | |||
Direct Materials | 15 pounds | $ | 2.00 per pound | $ | 30.00 |
Direct Labor | 0.25 hour | $ | 11.00 per hour | $ | 2.75 |
$ | 32.75 | ||||
During November, Arrow purchased 146,000 pounds of direct materials at a total cost of $296,500. The total factory wages for November were $27,750, 90% of which were for direct labor. Arrow manufactured 9,000 units of product during November using 79,800 pounds of direct materials and 2,360 direct labor hours. |
What is the direct labor efficiency variance for November? |
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