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The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs.

The following data relate to the direct materials cost for the production of 20,000 automobile tires:

Actual: 80,000 lbs. at $2.65 $212,000

Standard: 86,000 lbs. at $2.50 $215,000

  1. Determine the price variance, quantity variance and total direct materials cost variance.
  2. To whom should the variance be reported for analysis and control?

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