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   Price Cost Direct Materials   6 pounds     $ 1.60 per pound   $ 9.60   Direct Labor   0.30 hour     $ 10.00 per hour     3.00                       $ 12.60       During November, TaskMaster purchased 144,000 pounds of direct materials at a total cost of $273,600. The total factory wages for November were $50,000, 90% of which were for direct labor. TaskMaster manufactured 22,000 units of product during November using 125,000 pounds of direct materials and 6,000 direct labor hours.    What is the direct materials efficiency variance for November?   Multiple Choice   $43,200   $37,500   $19,200   $11,200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

 

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   Price Cost
Direct Materials   6 pounds     $ 1.60 per pound   $ 9.60  
Direct Labor   0.30 hour     $ 10.00 per hour     3.00  
                    $ 12.60  
 

 

During November, TaskMaster purchased 144,000 pounds of direct materials at a total cost of $273,600. The total factory wages for November were $50,000, 90% of which were for direct labor. TaskMaster manufactured 22,000 units of product during November using 125,000 pounds of direct materials and 6,000 direct labor hours. 

 

What is the direct materials efficiency variance for November?

 

Multiple Choice
  •  

    $43,200

  •  

    $37,500

  •  
    $19,200
  •  

    $11,200

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education