Question: SITO Elevator Company manufactures small hydroelectric elevators with a maximum capacity of ten passengers. One of the direct materials used is heavy duty carpeting for
SITO Elevator Company manufactures small hydroelectric elevators with a maximum capacity of ten passengers. One of the direct materials used is heavy duty carpeting for the floor of the elevator. The direct materials quantity standard for April was 8 square yards per elevator. During April, the purchasing agent purchased this carpeting at $11 per square yard; the standard price for the period was $12. Ninety elevators were completed and sold during the month; the Production Department used an average of 8.5 square yards of carper per elevator. Calculate the company’s direct materials price and quantity variances for carpeting for April.
Step by Step Solution
3.40 Rating (166 Votes )
There are 3 Steps involved in it
Computation of direct materials price variance Standard direct materials price 12 ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
95-B-M-A-S-C (443).xlsx
300 KBs Excel File
