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  3. the following data relate to the direct materials

The following data relate to the direct materials cost for the production of 1,900 automobile...

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Accounting

The following data relate to the direct materials cost for the production of 1,900 automobile tires:

Actual: 60,800 lb. at $2.05
Standard: 59,600 lb. at $2.00

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.

Price variance $fill in the blank 1 FavorableUnfavorable
Quantity variance $fill in the blank 3 FavorableUnfavorable
Total direct materials cost variance $fill in the blank 5 FavorableUnfavorable

b. The direct materials price variance should normally be reported to the

Plant ManagerPurchasing Department

. If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the

Purchasing DepartmentProduction Supervisor

. If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the

Purchasing DepartmentProduction Supervisor

.

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