TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 12

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 labor rate variance for November?

• A) $1,800
• B) $1,900
• C) $2,000
• D) $2,200

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Definitions:

Narrative Review

A comprehensive analysis of literature on a topic, often qualitative, providing a summary and synthesis of findings.

Meta-analysis

A statistical technique that combines the results of multiple studies to identify patterns, effects, or relationships.

Literature Reviews

Scholarly papers or segments within papers that synthesize existing research on a topic to provide an overview of the state of the art and identify gaps in knowledge.

Null Hypothesis

The hypothesis, used for statistical purposes, that the variables under investigation are not related in the population, that any observed effect based on sample results is due to random error.