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Direct Materials Variances

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

Actual: $54,700lbs,$ at $$2,05$ per lb$.$

Standard: $56,300lbs,$ at $$2,00$ per $lb.$ number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance

$

$x$

Direct Materials Quantity Variance

$

$x$

Favorable

$?$

Total Direct Materials Cost Variance

$

$x$

Favorable

$$

purchase of higher$-$quality raw materials, the variance should be reported to the Purchasing Department $.$