26

TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. Task Master has established the following standards for the prime costs of one unit of product. Standard Quantity 8 pounds 0.30 hour Standard Price $2.00 per pound $8.00 per hour Direct Materials Direct Labor Standard Cost $16.00 2.40 $18.40 During November, TaskMaster purchased 152,000 pounds of direct materials at a total cost of $319,200. The total factory wages for November were $48,000, 80% of which were for direct labor. Task Master manufactured 18,000 units of product during November using 125,000 pounds of direct materials and 7,000 direct labor hours. What is the direct materials efficiency variance for November? Multiple Choice O $38,000 O $12,500 $15,200 O O $16,000