The following data relate to the direct materials cost for the production of 15,000 automobile tires: a.

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The following data relate to the direct materials cost for the production of 15,000 automobile tires:

a. Determine the price variance, quantity variance, and total direct materials cost variance.
b. To whom should the variances be reported for analysis andcontrol?

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Survey of Accounting

ISBN: 978-1285183480

7th edition

Authors: Carl S. Warren

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Question Posted: Mar 11, 2014 10:59 AM

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The following data relate to the direct materials cost for the production of 15,000 automobile tires: a.

Question:

Actual: Standard: 600,000 lbs. at $3.60 580,000 lbs. at $3.85 $2,160,000 $2,233,000

Step by Step Answer:

a Price variance Direct Materials Price Variance Actual Price Standard Price Actual Quantity 360 per ...View the full answer

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