# Direct Materials VariancesThe following data relate to the direct materials cost for the production of 2,300 automobile tires:Actual:59,100 lbs. at \$1.85 per lb. Standard:60,900 lbs. at \$1.90 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\$ Direct Materials Quantity Variance\$ Total Direct Materials Cost Variance\$ b.  The direct materials price variance should normally be reported to the  . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the  . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the  .

Question
Asked Dec 9, 2019
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Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,300 automobile tires:

 Actual: 59,100 lbs. at \$1.85 per lb. Standard: 60,900 lbs. at \$1.90 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 \$ Direct Materials Quantity Variance \$ Total Direct Materials Cost Variance \$

b.  The direct materials price variance should normally be reported to the  . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the  . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the  .

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Step 1

a.  Calculation of direct material price variance, direct material quantity variance and direct material cost variance:

Step 2

Therefore...

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