Direct Materials Variances

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

Actual: $48,900lbs.$ at $$2\mathrm{.}05$ per $lb.$

Standard: $47,900lbs.$ at $$2\mathrm{.}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 Purchasing Department $.$

When lower amounts of direct materials are used because of production efficiencies, the variance would be

reported to the Production 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