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): Sitka Industries cost standards Standard Quantity Standard Price Direct materials 4 pounds $4.17 per pound Direct labor 4.09 hours $12.8 per hour Sitka Industries made 2,568 ladders in July and used 8,950 pounds of material to make these units. Smith Industries bought 15,103 pounds of material in the current period. There was a $220 unfavorable direct materials price variance. What is the total direct materials cost variance? Round to the nearest whole dollar, no decimals. If it is an unfavorable variance, enter a positive number. If is a favorable variance, enter a negative number using a - dash not parentheses
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): Sitka Industries cost standards Standard Quantity Standard Price Direct materials 4 pounds $4.17 per pound Direct labor 4.09 hours $12.8 per hour Sitka Industries made 2,568 ladders in July and used 8,950 pounds of material to make these units. Smith Industries bought 15,103 pounds of material in the current period. There was a $220 unfavorable direct materials price variance. What is the total direct materials cost variance? Round to the nearest whole dollar, no decimals. If it is an unfavorable variance, enter a positive number. If is a favorable variance, enter a negative number using a - dash not parentheses
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Sitka Industries uses a cost system that carries direct materials inventory at a
Sitka Industries cost standards
Standard Quantity | Standard Price | |
---|---|---|
Direct materials | 4 pounds | $4.17 per pound |
Direct labor | 4.09 hours | $12.8 per hour |
Sitka Industries made 2,568 ladders in July and used 8,950 pounds of material to make these units. Smith Industries bought 15,103 pounds of material in the current period. There was a $220 unfavorable direct materials price variance.
What is the total direct materials cost variance? Round to the nearest whole dollar, no decimals. If it is an unfavorable variance, enter a positive number. If is a favorable variance, enter a negative number using a - dash not parentheses.
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