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 StandardStandard Quantity PriceCostDirect Materials 8pounds $1.80per pound $14.40 Direct Labor 0.25hour $8.00per hour 2.00 $16.40 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 labor efficiency variance favorable or unfavorable?
A. Unfavorable
B. Favorable
Answer: A
Business
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