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.
-
What is the direct labor rate variance for November?

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

---

Definitions:

Parallel Rights

Similar or concurrent rights held by different entities that can exist simultaneously without interfering with each other.

Equal Rights

The principle that all people should have the same legal rights and opportunities regardless of personal characteristics.

Contract Right

A legally enforceable claim that derives from a contract, allowing a party to require another party to perform or refrain from performing certain acts.

Obligor

One who owes an obligation to another.