Question
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 | Standard Price | |
---|---|---|
Direct materials | 4 pounds | $4.32 per pound |
Direct labor | 1.29 hours | $12.44 per hour |
Sitka Industries made 2,593 ladders in July and used 7,947 pounds of material to make these units. Smith Industries bought 17,619 pounds of material in the current period. There was a $297 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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