TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 17

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. $$\begin{array} { | r r | r | r | } \hline& \text { Standard } & \text { Standard } & \text { Standard } \\&\text { Quantity } & \text { Price } & \text { Cost } \\\hline \text { Direct Materials } & 8 \text { pounds } & \$ 1.80 \text { per pound } & \$ 14.40 \\\hline \text { Direct Labor } & .25 \text { hour } & \$ 8.00 \text { per hour } & 2.00 \\\hline & &&\underline{ \$ 16.40} \\\hline\end{array}$$ 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 materials efficiency (quantity) variance for November?

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

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Definitions:

Systematic

An approach characterized by a methodical and organized procedure or process.

Step-By-Step Fashion

A methodology or process that proceeds sequentially, one step at a time.

Problem Solving

The process of identifying a trouble or challenge and finding the best way to resolve it effectively.

Problem Seekers

Individuals or entities that proactively look for issues or potential improvements within a system or organization to address them before they escalate.