TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 83

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 efficiency variance for November?

• A) $1,800
• B) $1,900
• C) $2,000
• D) $2,090

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Definitions:

Average Number

A measure of central tendency calculated by summing all numbers in a set and then dividing by the count of those numbers.

Computing

The process or practice of utilizing computer technology to complete a task or solve a problem, involving both hardware and software components.

Customers

Individuals or businesses that purchase goods or services from a company.

FCFS System

First-Come, First-Served System, a processing sequence where the first item to arrive is the first to be processed, commonly used in queue management and scheduling.