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Standards for the direct costs of one unit of product

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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 direct costs of one unit of product.

Standard Quantity Standard Price Standard Cost

Direct Materials 8pounds $1.80/pound $14.40

Direct Labor 0.25hr $8.00/hr $2.00 $16.40

During May, Arrow pruchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for may were $42,000 , 90percent of which were for direct labor, Arrow manufactured 19,000units of product during May using 142,500 pounds of direct material and 5,000 direct labor hrs.

Required: a. Calculate the direct materials price variance for May.

b. Calculate the direct materials quantity variance for May.

c. Calculate the direct labor wage rate variance for May.

d. Calculate the direct labor efficiency variance for May.

Reference no: EM131752621

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