Question
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 12 pounds $ 2.00 per pound $ 24.00 Direct Labor 0.25 hour $ 12.00 per hour $ 3.00 $ 27.00 During November, Arrow purchased 286,400 pounds of direct materials at a total cost of $578,200. The total factory wages for November were $71,400, 90% of which were for direct labor. Arrow manufactured 23,000 units of product during November using 244,500 pounds of direct materials and 5,870 direct labor hours. What is the direct materials efficiency (quantity) variance for November?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started