TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 54

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 labor price (rate) variance for November?

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

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Definitions:

July SST's

Sea Surface Temperatures measured globally or regionally in the month of July.

Monsoons

Monsoons are seasonal wind patterns that cause wet and dry seasons throughout much of the tropics, bringing significant rainfall during part of the year.

Seasonal Heating

The variation in temperature and climate that occurs in a specific region during different times of the year due to the tilt of the Earth's axis.

Indian Monsoon

A seasonal reversing wind accompanied by corresponding changes in precipitation, crucial for the agriculture of the Indian subcontinent.