Task Master 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	$ 2.40	per pound	$ 19.20
Direct Labor	0.25	hour	$ 9.20	per hour	2.30
					$ 21.50

 

During November, TaskMaster purchased 163,000 pounds of direct materials at a total cost of $407,500. The total factory wages for November were $48,000, 90% of which were for direct labor. TaskMaster manufactured 19,300 units of product during November using 144,750 pounds of direct materials and 5,060 direct labor-hours.

 

What is the direct materials efficiency variance for November?

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	$ 2.40	per pound	$ 19.20
Direct Labor	0.25	hour	$ 9.20	per hour	2.30
					$ 21.50

 

During November, TaskMaster purchased 163,000 pounds of direct materials at a total cost of $407,500. The total factory wages for November were $48,000, 90% of which were for direct labor. TaskMaster manufactured 19,300 units of product during November using 144,750 pounds of direct materials and 5,060 direct labor-hours.

 

What is the direct materials efficiency variance for November?