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Direct Materials Variances The following data relate to the direct materials cost for the production of 2 , 5 0 0 automobile tires: Actual: 6

Direct Materials Variances
The following data relate to the direct materials cost for the production of 2,500 automobile tires:
Actual:
62,800lb.at $1.80
61,500lb.at $1.75
Standard:
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
b. The direct materials price variance should normally be reported to the If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the
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