askMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the ollowing standards for the prime costs of one unit of product. Standard Standard Price $1.50 per pound $9.00 per hour Standard Quantity 7 pounds 0.35 hour Cost Direct Materials $10.50 Direct Labor 3.15 $13.65 During November, TaskMaster purchased 140,000 pounds of direct materials at a total cost of $238,000. The total factory wages for November were $50,000, 80% of which were for direct labor. TaskMaster manufactured 18,000 units of product during November using 118,000 pounds of direct materials and 4,000 direct labor hours. What is the direct materials efficienccy variance for November?
askMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the ollowing standards for the prime costs of one unit of product. Standard Standard Price $1.50 per pound $9.00 per hour Standard Quantity 7 pounds 0.35 hour Cost Direct Materials $10.50 Direct Labor 3.15 $13.65 During November, TaskMaster purchased 140,000 pounds of direct materials at a total cost of $238,000. The total factory wages for November were $50,000, 80% of which were for direct labor. TaskMaster manufactured 18,000 units of product during November using 118,000 pounds of direct materials and 4,000 direct labor hours. What is the direct materials efficienccy variance for November?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 5P: High-End Products Inc. uses a standard cost system in accounting for the cost of production of its...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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
Standard
Standard
Quantity
7 pounds
Price
Cost
Direct Materials
$1.50 per pound
$9.00 per hour
$10.50
Direct Labor
0.35 hour
3.15
$13.65
During November, TaskMaster purchased 140,000 pounds of direct materials at a total cost of $238,000. The total factory wages for November were
$50,000, 80% of which were for direct labor. TaskMaster manufactured 18,000 units of product during November using 118,000 pounds of direct
materials and 4,000 direct labor hours.
What is the direct materials efficiency variance for November?
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