Direct Materials Variances

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

Actual: $900,000lbs.$ at $$2\mathrm{.}75$ per lb$.$

Standard: $916,000lbs.$ at $$2\mathrm{.}70$ 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

$

$

$

$$

$$

Favorable $$

Unfavorable $$

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 Purchasing Department $.$