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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: Standard: 61,500 lb. at $1.75
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: Standard: 61,500 lb. at $1.75 60,300 lb. at $1.70 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 Unfavorable Unfavorable Unfavorable . If lower amounts of direct materials had been used because of production . If the favorable use of raw materials had been caused by the purchase of higher-quality raw b. The direct materials price variance should normally be reported to the Purchasing Department efficiencies, the variance would be reported to the Production Supervisor materials, the variance should be reported to the Purchasing Department
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