Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. direct materials variances the following data rela

Direct Materials Variances The following data relate to the direct materials cost for the production...

70.2K

Verified Solution

Question

Accounting

Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Actual: 57,900 lbs. at $1.75 per lb.
Standard: 56,200 lbs. at $1.70 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 $fill in the blank 1 Unfavorable
Direct Materials Quantity Variance $fill in the blank 3 Unfavorable
Total Direct Materials Cost Variance $fill in the blank 5 Unfavorable

b. The direct materials price variance should normally be reported to the Purchasing Department . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the Production 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 Purchasing Department .

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students