Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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):

image text in transcribed

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 $300 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 9,900 pounds were used to make these ladders, what would be the direct materials quantity variance? Direct materials quantity variance $ E. If there was a $330 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material? Amount paid $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Practitioners Guide To Edp Auditing

Authors: Jack Mullen

1st Edition

0136912621, 978-0136912620

More Books

Students also viewed these Accounting questions

Question

2. What are your challenges in the creative process?

Answered: 1 week ago