Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 55,300 lbs. at $1.75 per lb. Standard: 56,400 lbs. at $1.70 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 2,765 Unfavorable $ Direct Materials Quantity Variance $ 1,870 x Favorable $ Total Direct Materials Cost Variance 895 Unfavorable b. The direct materials price variance should normally be reported to the Purchasing Department. When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the 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 Factory Overhead Controllable Variance Bellingham Company produced 5,900 units of product that required 6.5 standard direct labor hours per unit. The standard variable overhead cost per unit is $3.80 per direct labor hour. The actual variable factory overhead was $142,960. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number $ Favorable Direct Materials Purchases Budget Pasadena Candle Inc. budgeted production of 725,000 candles for the January. Wax is required to produce a candle. Assume 13 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,900 pounds. The desired January 31 wax inventory is 13,100 pounds. If candle wax costs $1,40 per pound, determine the direct materials purchases budget for January (One pound - 16 ounces) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Direct Materials Purchases Budget For the Month Ending January 31 Pounds of wax required for production: Candles Desired ending inventory, January 31 13,100 602,162.50 Total units available Estimated beginning inventory, January 1 18,900 Total pounds to be purchased 83.262.50 Unit price 1.40 Total direct materials to be purchased in January 816,567.50 Direct Labor Variances Bellingham Company produces a product that requires 6 standard direct labor hours per unit at a standard hourly rate of $19.00 per hour. If 5,500 units used 32,300 hours at an hourly rate of $19.57 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ 18,411 Unfavorable b. Direct labor time variance $ 13,300 x Favorable c. Direct labor cost variance 5,111 Unfavorable Direct Materials Variances tellingham Company produces a product that requires 12 standard pounds per unit. The standard price is $4 per pound. If 3,300 units used 38,400 pounds, which were purchased at $4.16 per pound, what he direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance 18,411 X Unfavorable b. Direct materials quantity variance 13,300 X Favorable c. Direct materials cost variance $ 5,111 X Unfavorable