Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 62,100 lbs. at $2 per Ib. 64,000 lbs. at $2.05 per lb. 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. Direct Materials Price Variance $ Favorable Incorrect Direct Materials 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 shoul be reported to the Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The direct material cost variance is the difference between the actual and standard material cost per quantity. Learning Objective 3. Check My Work Next