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

FINANCIAL ACCOUNTING
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Author:Libby
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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.
**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.
Transcribed Image Text:**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.
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