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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 (
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 cost standards
Standard Quantity Standard Price
Direct materials pounds $ per pound
Direct labor hours $ per hour
Sitka Industries made ladders in July and used pounds of material to make these units. Smith Industries bought pounds of material in the current period. There was a $ unfavorable direct materials price variance.
What is the direct materials quantity variance? Round to the nearest whole dollar, no decimals. If it is an unfavorable variance, enter a positive number. If it is a favorable variance, enter a negative number using a dash not parentheses.
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