40. 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		8	pounds			$	1.80	per pound		$	14.40
Direct Labor		.20	hour			$	9.00	per hour			1.80
										$	16.20

During November, TaskMaster purchased 200,000 pounds of direct materials at a total cost of $400,000. The total factory wages for November were $44,000, 90% of which were for direct labor. TaskMaster manufactured 23,000 units of product during November using 182,000 pounds of direct materials and 5,000 direct labor hours.

What is the direct materials efficiency (quantity) variance for November?

$28,800.

$3,600.

$36,400.

$40,000.

41. In 2016, Evans Corporation had an operating profit of $764,000 and a residual income of $307,000. If Evans' cost of capital is 10%, what is the amount of the invested capital?

$3,070,000.

$2,613,000.

$7,640,000.

$4,570,000.

42.

Denominator hours for May		22,500
Actual hours worked during May		21,500
Standard hours allowed for May		19,500
Flexible budget fixed overhead cost	$	67,500
Actual fixed overhead costs for May	$	72,000

Danske Company had total underapplied overhead of $22,500. Additional information is as follows:

Variable Overhead:
Applied based on standard direct labor hours allowed	$	57,000
Budgeted based on standard direct labor hours		45,500
Fixed Overhead:
Applied based on standard direct labor hours allowed	$	45,000
Budgeted based on standard direct labor hours		34,500

What is the actual total overhead for the period?

$57,500.

$102,500.

$124,500.

$67,500.