Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,300 automobile tires:

Actual:	54,700 lbs. at $1.85 per lb.
Standard:	53,600 lbs. at $1.80 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	$fill in the blank 1	FavorableUnfavorableUnfavorable
Direct Materials Quantity Variance	$fill in the blank 3	FavorableUnfavorableUnfavorable
Total Direct Materials Cost Variance	$fill in the blank 5	FavorableUnfavorableUnfavorable

b. The direct materials price variance should normally be reported to the

Plant ManagerPurchasing DepartmentPurchasing Department

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

Purchasing DepartmentProduction SupervisorProduction 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 DepartmentProduction SupervisorPurchasing Department

.