Standard Price = Standard Cost Direct materials 3 pounds $4.50 per pound $13.50 Direct labor 2.00 hours
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Sitka Industries uses a cost system that carries direct materials inventory at a
| Standard Quantity X | Standard Price = | Standard Cost | |
| Direct materials | 3 pounds | $4.50 per pound | $13.50 |
| Direct labor | 2.00 hours | $12.00 per hour | $24.00 |
| Total Cost | $37.50 |
Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Sitka Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance.
a. how much in total did Sitka pay for the 15,500 pounds?
b. what is the direct materials quantity variance?
c. what is the total direct material cost variance?
Given :
| Standard Quantity X | Standard Price = | Standard Cost | |
| Direct materials | 3 pounds | $4.50 per pound | $13.50 |
| Direct labor | 2.00 hours | $12.00 per hour | $24.00 |
| Total Cost | $37.50 |
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