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Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: Standard: 145,000 lbs. at $2.80

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Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: Standard: 145,000 lbs. at $2.80 per lb. 150,000 lbs. at $2.75 per Ib. 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 A A Direct Materials Quantity Variance Total Direct Materials Cost Variance A 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 b. The direct materials price variance should normally be reported to the of higher-quality raw materials, the variance should be reported to the

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