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TaskMaster Enterprises employs standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime

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TaskMaster Enterprises employs 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. 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 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. What is the direct materials efficiency (quantity) variance for November? _____ A) $14, 400. B) $16,000. C) $14, 250. D) $17, 100 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. 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 materials and 5,000 direct labor hours. Is the direct materials efficiency (quantity) variance favorable or unfavorable? _____ A) Unfavorable. B) Favorable. Dockside Enterprises Inc., operates two divisions: (1) a management division that owns and manages bulk carriers on the Great Lakes and (2) a repair division that operates a dry dock in Tampa, Florida. The repair division works on company ships, as well as other large-bull ships. The repair division has an estimated variable cost of $37 per labor-hour. The repair division has a backlog of work for outside ships. They charge $70.00 per hour for labor, which is standard for this type of work. The management division complained that it could hire its own repair workers for $45.00 per hour, including leasing an adequate work area. What is the minimum transfer price per hour that the repair division should obtain for its services, assuming it is operating at capacity? ____ A) $37.00. B) $33.00. C) $45.00. D) $70.00

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