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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: 60,400 lbs. at $1.85 $111,740
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 60,400 lbs. at $1.85 $111,740 Standard: 59,200 lbs. at $1.8 $106,560 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 Unfavorable Quantity variance $ Unfavorable Total direct materials cost variance Unfavorable b. The direct materials price variance should normally be reported to the Purchasing Department. If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor. 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 Purchasing Department
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