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 QuantityStandard PriceStandard CostDirect Materials8 pounds$ 2.70 per pound$ 21.60Direct Labor0.25 hour$ 9.80 per hour2.45$ 24.05During 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 155,700 pounds of direct materials and 5,090 direct labor-hours.Is the direct materials efficiency variance favorable or unfavorable?Multiple ChoiceFavorableThere Is not enough Information to determine.The varlance Is zero and is nether favorable nor unfavorable.Unfavorable 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 unitof product.Direct Materials.Direct LaborMultiple ChoiceFavorableStandard Quantity8 pounds0.25 hourDuring November, TaskMaster purchased 164,500 pounds of direct materials at a total cost of $427,700. The total factory wages for November were $51,000, 90% of which were for direct labor.TaskMaster manufactured 19,400 units of product during November using 155,700 pounds of direct materials and 5,090 direct labor-hours. 4Is the direct materials efficiency variance favorable or unfavorable?There is not enough Information to determine.Standard Price$ 2.70 per pound$9.80 per hourUnfavorableThe variance is zero and is neither favorable nor unfavorable.Standard Cost$ 21.602.45$ 24.05Prev2 of 10Next >

Name: TaskMaster Enterprises employs a standard cost system in which direct
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Description: 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 QuantityStandard PriceStanda

Standard Price = $2.70 per pound Standard quantity of material allowed = SQ produced ×…

Answered: TaskMaster Enterprises employs a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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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 $ 2.70 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 155,700 pounds of direct materials and 5,090 direct labor-hours. Is the direct materials efficiency variance favorable or unfavorable? Multiple Choice Favorable There Is not enough Information to determine. The varlance Is zero and is nether favorable nor unfavorable. Unfavorable

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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