Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: Standard 60,000 lbs. at $2.05 per lb. 61,800 lbs. at $2 per lb. O 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 Unfavorable Favorable Favorable If lower amounts of direct materials had been used . b. The direct materials price variance should normally be reported to the Purchasing Department because of production efficiencies, the variance would be reported to the Production Supervisor purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department If the favorable use of raw materials had been caused by the Check My Work Unfavorable variances can be thought of as increasing costs (a detit). Favorable variances can be thought of as decreasing costs (a credit) The direct material cost variance is the difference between the actual and standard material cost per quantity Learning Objective 3