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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

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 $ 2.00 per pound $ 16.00
Direct Labor 0.25 hour $ 8.00 per hour 2.00
$ 18.00

During November, TaskMaster purchased 152,000 pounds of direct materials at a total cost of $319,200. The total factory wages for November were $48,000, 80% of which were for direct labor. TaskMaster manufactured 18,000 units of product during November using 125,000 pounds of direct materials and 5,000 direct labor hours.

What is the direct labor rate variance for November?

Multiple Choice

  • $1,800

  • $6,400

  • $4,000

  • $1,600

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