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 $ $1\mathrm{.}80$ per pound $ $14\mathrm{.}40$

Direct Labor $0\mathrm{.}25$ hour $ $8\mathrm{.}00$ per hour $2\mathrm{.}00$

$ $16\mathrm{.}40$

During November, TaskMaster purchased $160,000$ pounds of direct materials at a total cost of $$304,000.$ The total factory wages for November were $$42,000,90\%$ of which were for direct labor. TaskMaster manufactured $19,000$ units of product during November using $142,500$ pounds of direct materials and $5,000$ direct labor$-$hours.

Is the direct materials price variance favorable or unfavorable?

Multiple Choice

Favorable

Unfavorable

The variance is zero and is neither favorable nor unfavorable.

There is not enough information to determine.