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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 9 pounds $ 2.00 per pound $ 18.00
Direct Labor 0.25 hour $ 9.00 per hour $ 2.25
$ 20.25

During November, Arrow purchased 189,800 pounds of direct materials at a total cost of $385,900. The total factory wages for November were $46,800, 90% of which were for direct labor. Arrow manufactured 20,000 units of product during November using 143,500 pounds of direct materials and 5,090 direct labor hours.

What is the direct materials efficiency (quantity) variance for November?

$73,000 favorable.

$6,300 favorable.

$5,670 favorable.

$65,700 favorable.

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