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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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 .