Question
$______________ _____(favorable or unfavorable)________ The following data relate to the direct materials cost for the production of 2,400 automobile tires: Actual: 58,400 lbs. at $2
$______________ _____(favorable or unfavorable)________
The following data relate to the direct materials cost for the production of 2,400 automobile tires:
Actual: | 58,400 lbs. at $2 per lb. | |
Standard: | 57,200 lbs. at $1.95 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 | $______________ _____(favorable or unfavorable)________ | |
Direct Materials Quantity Variance | $______________ _____(favorable or unfavorable)________ | |
Total Direct Materials Cost Variance | $______________ _____(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) .
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