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
TaskMaster Enterprises employs a
| Standard Quantity | Standard Price | Standard Cost | |||
|---|---|---|---|---|---|
| Direct Materials | 8 | pounds | $ 2.70 | per pound | $ 21.60 |
| Direct Labor | 0.25 | hour | $ 9.80 | per hour | 2.45 |
| $ 24.05 |
During November, TaskMaster purchased 164,500 pounds of direct materials at a total cost of $427,700. The total factory wages for November were $51,000, 90% of which were for direct labor. TaskMaster manufactured 19,400 units of product during November using 145,500 pounds of direct materials and 5,090 direct labor-hours.
What is the direct labor rate variance for November?
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This is not correct. The possible answers are $2,640, $4,280, $3,982, and $2,904. What is the correct way to solve this problem?
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