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Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 53,100 lbs. at $2 $106,200

Direct Materials Variances

The following data relate to the direct materials cost for the production of 1,900 automobile tires:

Actual: 53,100 lbs. at $2 $106,200
Standard: 52,000 lbs. at $1.95 $101,400

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 $
Quantity variance $
Total direct materials cost variance $

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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