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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 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 3,000 ladders in July and used 8,700 pounds of material to make these units. Sitka Industries bought 15,500 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 15,500 pounds? Amount paid $ 68,510 X B. What is the direct materials quantity variance? Direct materials quantity variance $ 1,320 Favorable C. What is the total direct materials cost variance? Total direct materials cost variance $ 1,152 X Favorable D. What if 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? Direct materials quantity variance $ X Unfavorable E. If there was a $350 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material? Amount paid $ Actual price paid for material $0.90 Standard price for material $1.10 Actual quantity purchased and used in production 100 Standard quantity for units produced 120 Actual labor rate per hour $14 Standard labor rate per hour $15 Actual hours 200 Standard hours for units produced 210 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance 20 Favorable Material quantity variance 70 x Favorable Labor rate variance 400 x Favorable Labor efficiency variance 360 Favorable $16 Actual price paid for material $0.90 Standard price for material $0.70 Actual quantity purchased and used in production 100 Standard quantity for units produced 110 Actual labor rate per hour Standard labor rate per hour $18 Actual hours 200 Standard hours for units produced 220 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance 11 X Unfavorable Material quantity variance 27 X Favorable Labor rate variance Favorable Labor efficiency variance 130 X Favorable $ $ R TAI thid Furobi unfuolo
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