Direct Materials Variances The following data relate to the direct materials cost for the production...
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Direct Materials Variances The following data relate to the direct materials cost for the production of 1,500 automobile tires Actual: 60,900 iba, at $1.95 per i Standard: 62.100 lbs. at $2.00 per lb. 2. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost varianco, Entera favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Materials Price Variance 3,045 Favorable Direct Materials Quantity Variance 2,400 Favorable Total Direct Materials cout Variance 7,272 Favorable b. The direct materials price variance should normally be reported to the purchasing Department When lower amounts direct materials are used because of production efficiencies, the variance would be reported to the Production Supervisor When the favorable use of raw materials is caused by the purchase of higher quality raw materials, the variance should be reported to the Purchasing Department
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