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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 59,600 lbs. at $2.05 per

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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 59,600 lbs. at $2.05 per Ib. Standard: 57,800 lbs. at $2.10 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 Purchasing Department

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