Standard Standard Standard Quantity Price Cost t materials 3 pounds $4.40 per pound $13.20 t labor 2.00 hours 12.00 per hour 24.00 cost $37.20 Industries made 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material 1. There was a $250 unfavorable direct materials price variance. all amounts as positive numbers. w much in total did Sitka pay for the 15,400 pounds? nt paid s at is the direct materials quantity variance? materials quantity variance s Favorable v at is the total direct materials cost variance? direct materials cost variance $ Favorable v at if o o00 pounds wore uced to make thoce laddors what would be the diroct matorials quantity varianco?
Standard Standard Standard Quantity Price Cost t materials 3 pounds $4.40 per pound $13.20 t labor 2.00 hours 12.00 per hour 24.00 cost $37.20 Industries made 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material 1. There was a $250 unfavorable direct materials price variance. all amounts as positive numbers. w much in total did Sitka pay for the 15,400 pounds? nt paid s at is the direct materials quantity variance? materials quantity variance s Favorable v at is the total direct materials cost variance? direct materials cost variance $ Favorable v at if o o00 pounds wore uced to make thoce laddors what would be the diroct matorials quantity varianco?
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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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![E. If there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material?
Amount paid s](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa800cf3f-3ef0-4a33-9f3c-792603d81a27%2Fae0c615c-836a-44ca-8ba7-f80bdec8b789%2Ftlkm338_processed.png&w=3840&q=75)
Transcribed Image Text:E. If there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material?
Amount paid s
![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
Standard
Standard
Quantity
Price
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 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current
period. There was a $250 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 $
Favorable v
C. What is the total direct materials cost variance?
Total direct materials cost variance $
Favorable v
D. What if 9,800 pounds were used to make these ladders, what would be the direct materials quantity variance?
Direct materials quantity variance
Unfavorable v](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa800cf3f-3ef0-4a33-9f3c-792603d81a27%2Fae0c615c-836a-44ca-8ba7-f80bdec8b789%2F6wt01pw_processed.png&w=3840&q=75)
Transcribed Image Text: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
Standard
Standard
Quantity
Price
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 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current
period. There was a $250 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 $
Favorable v
C. What is the total direct materials cost variance?
Total direct materials cost variance $
Favorable v
D. What if 9,800 pounds were used to make these ladders, what would be the direct materials quantity variance?
Direct materials quantity variance
Unfavorable v
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