The following data relate to the direct materials cost for the production of 2,200 automobile...
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The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 50,500 lbs. at $1.80 $90,900 Standard: 49,500 lbs. at $1.75 $86,625 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance $ -180 Quantity variance $ 1750 Total direct materials cost variance $ -42 b. The direct materials price variance should normally be reported to the . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the .
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