eBook Show Me How Calculator Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: 56,600 lbs. at $1.95 per lb. Standard: 54,900 lbs. at $1.9 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 Unfavorable Unfavorable Unfavorable Direct Materials Quantity Variance Total Direct Materials Cost Variance 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 varlance should be reported to the Purchasing Department . Check My Work Unfavorable variances can be thought of as increasing costs (a debit) Favorable vaniances can be thought of as decreasing costs (a credt The direct material cost vanance is the difference between the actual and standard material cost per quantity Learning Objective3 Check My Work Previous Next 810 PM 02/2018