A. The following data relate to the direct materials cost for the production of 2,100 automobile tires: Actual: 58,600 lbs. at $1.95 per lb. Standard: 56,800 lbs. at $2.00 per lb. 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.

Direct Materials Price Variance:

Direct Materials Quantity Variance:

Total Direct Materials Cost Variance:

B.The direct materials price variance should normally be reported to the (Plant Manager OR Purchasing Department). When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to (Purchasing Department OR tProduction 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 OR Production Supervisor).

C. De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400.

Determine the price variance, quantity variance, and total direct materials cost variance for July.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price Variance:

Quantity Variance:

Total Direct Materials Cost Variance: