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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 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 2,900 ladders in July and used 8,500 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.

Enter all amounts as positive numbers.

A. How much in total did Sitka pay for the 15,500 pounds?

Amount paid $fill in the blank 1

B. What is the direct materials quantity variance?

Direct materials quantity variance $fill in the blank 2 Favorable

C. What is the total direct materials cost variance?

Total direct materials cost variance $fill in the blank 4 Favorable

D. What if 9,100 pounds were used to make these ladders, what would be the direct materials quantity variance?

Direct materials quantity variance $fill in the blank 6 Unfavorable

E. If there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?

Amount paid $fill in the blank 8

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