TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 125

Multiple Choice

TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.
$\begin{array}{lclr}&\text { Standard } & \text { Standard } & \text { Standard } \\&\text { Quantity } & \text { Price } & \text { Cost }\\\text { Direct Materials } & \text { 8pounds } & \$ 1.80 \text { per pound } & \$ 14.40 \\\text { Direct Labor } & 0.25 \text { hour } & \$ 8.00 \text { per hour } & \underline{2.00}\\&&& \underline{\$16.40}\end{array}$

During November, TaskMaster purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.
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What is the direct materials price variance for November?

• A) $14,250
• B) $14,400
• C) $16,000
• D) $17,100

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Definitions:

Internal Factors

Elements within an individual or organization that influence behavior, decisions, and outcomes, such as values, skills, attitudes, and emotions.

Cross-Cultural Research

The study of how cultural factors affect different human behaviors.

Attributions

The process by which individuals explain the causes of behavior and events, either attributing them to external or internal factors.

Cultural Differences

Variations in values, beliefs, practices, and customs among different societies and communities.