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Direct Materials Variances

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

Actual: $900,000lbs.$ at $$2\mathrm{.}75$ per lb $.$

Standard: $916,000lbs,$ at $$2\mathrm{.}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

Direct Materials Quantity Variance

Total Direct Materials Cost Variance

$$1$

$

$

Unfavorable

Favorable

Unfavorable

b$.$ The direct materials price variance should normally be reported to the $$ Purchasing Department $-$ When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the $$

$-$ 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 $.$