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 Standard Standard Quantity Price 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 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,600 pounds of material in the cun 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 15,600 pounds? Amount paid $ B. What is the direct materials quantity variance? Direct materials quantity variance $ C. What is the total direct materials cost variance? Total direct materials cost variance $ there ladders what would be the direct materials quantity variance?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...
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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):
Standard
Standard
Standard
%3D
Quantity
Price
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 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,600 pounds of material in the curr
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 15,600 pounds?
Amount paid
B. What is the direct materials quantity variance?
Direct materials quantity variance $
C. What is the total direct materials cost variance?
Total direct materials cost variance $
D. What if 9,800 pounds were used to make these ladders, what would be the direct materials quantity variance?
Direct materials quantity variance $
E. If there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,600 pounds of material?
Amount paid $
Previous
Transcribed Image Text:keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false E Print Item 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 Standard Standard %3D Quantity Price 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 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,600 pounds of material in the curr 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 15,600 pounds? Amount paid B. What is the direct materials quantity variance? Direct materials quantity variance $ C. What is the total direct materials cost variance? Total direct materials cost variance $ D. What if 9,800 pounds were used to make these ladders, what would be the direct materials quantity variance? Direct materials quantity variance $ E. If there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,600 pounds of material? Amount paid $ Previous
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