TaskMaster Enterprises Employs a Standard Cost System in Which Direct

question 70

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 price variance for November?

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

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Definitions:

Means-End Analysis

A problem-solving strategy that involves breaking down a problem into smaller problems and solving each one to reach an overall goal.

Working Backwards

A problem-solving strategy that involves starting from the desired outcome and working in reverse order to determine the steps needed to achieve that goal.

Mental Set

The tendency to apply a familiar strategy to the solution of a problem without carefully considering the special requirements of that problem.

Overhead Projector

An optical device used to project images onto a screen, typically for presentations or educational purposes.