The following data relate to the direct materials cost for the production of 4,000 automobile tires: Actual:
Question:
Actual: 128,500 pounds at ....... $1.85 $237,725
Standard: 126,750 pounds at ...... $2.00 $253,500
a. Determine the price variance, quantity variance, and total direct materials cost variance.
b. To whom should the variances be reported for analysis and control?
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Step by Step Answer:
a b The direct materials price variance should normally be reported to the Purchasing Department whi...View the full answer
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Related Book For 
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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