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The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: 51,000 lbs. at $1.9 per lb. Standard: 52,500

The following data relate to the direct materials cost for the production of 2,500 automobile tires:

Actual: 51,000 lbs. at $1.9 per lb.
Standard: 52,500 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 deparment . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the purchasing deparment or purchasing 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 purchsing deparment or purchasing supervisor .

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