Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Actual:	55,900 lbs. at $1.7 per lb.
Standard:	57,600 lbs. at $1.75 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	Favorable OR Unfavorable
Direct Materials Quantity Variance	$fill in the blank 3	Favorable OR Unfavorable
Total Direct Materials Cost Variance	$fill in the blank 5	Favorable OR Unfavorable

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

Plant Manager OR Purchasing Department

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

Purchasing Department OR Production 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 Department OR Production Supervisor