Question
The following data relate to the direct materials cost for the production of automobile tires: Actual: 900,000 lbs. at $2.75 per lb. Standard: 916,000 lbs.
The following data relate to the direct materials cost for the production of automobile tires:
Actual: 900,000 lbs. at $2.75 per lb. Standard: 916,000 lbs. at $2.70 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.
Line Item Description | Amount | Variance |
---|---|---|
Direct Materials Price Variance | FavorableUnfavorable | |
Direct Materials Quantity Variance | FavorableUnfavorable | |
Total Direct Materials Cost Variance | FavorableUnfavorable |
b. The direct materials price variance should normally be reported to the _____________.
Plant ManagerPurchasing Department
. When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the _______________.
Production SupervisorPurchasing Department
. When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the _____________.
Production SupervisorPurchasing Department
.
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