Task Master Enterprises employs a standard cost system in which direct materials inventory is carried at standard
Question:
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 |
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|
|
|
| $ 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?
Expert Answer:
To calculate the direct materials efficiency variance we need to compare the act... View the full answer
