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 x Standard Price = Standard Cost Direct materials 3 pounds $4.50 per pound $13.50 Direct labor 2.00 hours 12.00 per hour 24.00 Total cost $37.50 Sitka Industries made 3,000 ladders in July and used 8,900 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current period. There was a $200 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 $fill in the blank 1 B. What is the direct materials quantity variance? Direct materials quantity variance $fill in the blank 2 C. What is the total direct materials cost variance? Total direct materials cost variance $fill in the blank 4 D. What if 9,600 pounds were used to make these ladders, what would be the direct materials quantity variance? Direct materials quantity variance $fill in the blank 6 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 $fill in the blank 8
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