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:

Salary

Regular compensation paid to an employee, typically as a monthly or yearly wage.

Diagnostic Displays

Visual representations used to examine or analyze data, aiding in the identification of patterns or anomalies within the data.

Histograms

Graphical representations of the distribution of numerical data using bars of different heights to illustrate the frequencies of different values.

Leverage

The use of borrowed funds to increase the potential return of an investment or project.