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 productStandard QuantityStandard PriceStandard CostDirect Materials8 pounds$ 2.00 per pound$ 16.00Direct Labor0.25 hour$ 8.40 per hour2.10$ 18.10During November, TaskMaster purchased 161.000 pounds of direct materials at a total cost of $338.100. The total factory wages for November were $44.000, 90% of which were for direct labor.TaskMaster manufactured 19.100 units of product during November using 143,250 pounds of direct materials and 5.020 direct labor hours.Is the direct materials price variance favorable or unfavorable?Multiple ChoiceUnfavorableThe varlance Is zero and Is nether favorable nor unfavorable.FavorableThere Is not enough information to determine. **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.**| | Standard Quantity | Standard Price | Standard Cost ||------------------------|-------------------|----------------|---------------|| **Direct Materials** | 8 pounds | $2.00 per pound| $16.00 || **Direct Labor** | 0.25 hour | $8.40 per hour | $2.10 || | | | **$18.10** |During November, TaskMaster purchased 161,000 pounds of direct materials at a total cost of $338,100. The total factory wages for November were $44,000, 90% of which were for direct labor. TaskMaster manufactured 19,100 units of product during November using 143,250 pounds of direct materials and 5,020 direct labor hours.**Is the direct materials price variance favorable or unfavorable?****Multiple Choice**- Unfavorable- The variance is zero and is neither favorable nor unfavorable.- Favorable- There is not enough information to determine.

Name: TaskMaster Enterprises employs a standard cost system in which direct
Uploaded: 2024-03-20T06:33:06.000Z
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Description: 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 productStandard QuantityStandard PriceStandar

The Direct Materials Price Variance is the difference between the actual and standard price per unit of the material applied to the actual quantity of an material purchased or used.Formula for Direct material price variance = Direct materials price variance = (Standard Price - Actual Price) x Actual Quantity,Actual Quantity of Direct Materials = 161,000 PoundsActual Price = $338,000 ÷ 161,000 = $2.099 Per PoundStandard Price = $2.00 Per Pound Computation of Direct Material Price VarianceDirect Material Price Variance= Actual Quantity (Standard Price - Actual Price)= 161,000 pounds ($2.00 Per Pound - $2.099 Per Pound)= $16,000 Un-Favourable Correct option is = 1 st optionThe Direct Material Price Variance is $16,000 Un-Favourable = Unfavorable Thanks Hope you understand

Answered: TaskMaster Enterprises employs a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 Standard Quantity Standard Price Standard Cost Direct Materials 8 pounds $ 2.00 per pound $ 16.00 Direct Labor 0.25 hour $ 8.40 per hour 2.10 $ 18.10 During November, TaskMaster purchased 161.000 pounds of direct materials at a total cost of $338.100. The total factory wages for November were $44.000, 90% of which were for direct labor. TaskMaster manufactured 19.100 units of product during November using 143,250 pounds of direct materials and 5.020 direct labor hours. Is the direct materials price variance favorable or unfavorable? Multiple Choice Unfavorable The varlance Is zero and Is nether favorable nor unfavorable. Favorable There Is not enough information to determine.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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