Direct Materials Variances The following data relate to the direct materials cost for the production...
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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: 59,900 ibs. at $1.95 per lb. Standard: 61,100 lbs. at $1.90 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost voriance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. b. The direct matenals 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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