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Problem 1: Arrow Industries uses a standard cost system and has established the following standards for one unit of product: 0.25 hours at $8.00 per hour. During May, Arrow manufacturing 19,000 units. The actual direct labor wages was $37,800 using 5,000 direct labor hours. The direct labor rate variance for May is:
A. $200 unfavorableB. $2,200 favorableC. $200 favorableD. $2,200 unfavorable
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