Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Standard Quantity x Standard Price = Standard Cost Direct materials 3 pounds $4.40 per pound $13.20 Direct labor 2.00 hours 12.00 per hour 24.00 Total cost $37.20 Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current period. There was a $200 unfavorable direct materials price variance. Enter all amounts as positive numbers. A. How much in total did Sitka pay for the 15,400 pounds? Amount paid $________ B. What is the direct materials quantity variance? Direct materials quantity variance $________ C. What is the total direct materials cost variance? Total direct materials cost variance $__________ D. What if 9,400 pounds were used to make these ladders, what would be the direct materials quantity variance? Direct materials quantity variance $________ E. If there was a $350 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material? Amount paid $________
Sitka Industries uses a cost system that carries direct materials inventory at a
| Standard Quantity |
x | Standard Price |
= | Standard Cost |
|
| Direct materials | 3 pounds | $4.40 per pound | $13.20 | ||
| Direct labor | 2.00 hours | 12.00 per hour | 24.00 | ||
| Total cost | $37.20 |
Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current period. There was a $200 unfavorable direct materials price variance.
Enter all amounts as positive numbers.
A. How much in total did Sitka pay for the 15,400 pounds?
Amount paid $________
B. What is the direct materials quantity variance?
Direct materials quantity variance $________
C. What is the total direct materials cost variance?
Total direct materials cost variance $__________
D. What if 9,400 pounds were used to make these ladders, what would be the direct materials quantity variance?
Direct materials quantity variance $________
E. If there was a $350 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material?
Amount paid $________
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