Multiple choice question based on variance analysis

Assignment Help Financial Accounting

Reference no: EM1313227

Multiple choice question based on Variance Analysis.

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	Standard	Standard
	Quantity	Price	Cost
Direct materials	8 pounds	$1.80 per pound	$14.40
Direct labor	0.25 hour	$8.00 per hour	$2.00

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 material price variance for May is (note that the purchase price variance is based on the amount purchased - while usage variance is based on amount used):
Choose one answer.

a. $16,000 favorable.
b. $16,000 unfavorable.
c. $14,250 favorable.
d. $14,250 unfavorable.

Reference no: EM1313227

Questions Cloud

Find rex''s direct materials price variance : Compute the Variance analysis of direct Materials - Find Rex's direct materials price variance

Posterior group of axial muscles : Which of the following is the most posterior group of axial muscles? Muscles of the shoulder girdle. Muscles of the head and neck. Muscles of the pelvic floor

How fast should the truck travel to stay beneath airplane : A 59.0 kg skateboarder wants to just make it to the upper edge of a "quarter pipe," a track that is one-quarter of the circle with a radius of 3.80 m.

Example of a dysfunctional organization for many years : Enron will be an example of a dysfunctional organization for many years to come. It was clearly a organization riddled with fraud also excess also its conduct drove it into bankruptcy.

Multiple choice question based on variance analysis : Multiple choice question based on Variance Analysis - The direct material price variance for May is (note that the purchase price variance is based on the amount purchased

Dielectric break down of mica is 40kv/mm : An empty sled of mass 25kg slides down a muddy hill with the constant of 2.40m/s. The slope of the hill is inclined at the angle of 15 degrees with the horizontal.

A projectile is launched vertically upward : A spherical Balloon is inflated at the rate of 144pie cubic inches per minute (in^3/min). How fast is the radius of the balloon changing when the radius is 4 inches? Recall the formula for volume of sphere: V(4/3) pieR^3?

Government imposes a ceilingprice of the firms product : If the government imposes a ceiling of $6 on the price of the firm's product, Illustrate what output will the firm produce also Illustrate what will be total profits.

Linear and log linear trend in data : Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.

User Account

All Pages