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54% AA A v2.cengagenow.com rt black girl dr... draw sunflower... CH 23 Homework CengageNO... Why (willitei00. Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: 145,000 lb. at $2.80 Standard: 150,000 lb. at $2.75 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 $4 Unfavorable Quantity variance Favorable V Total direct materials cost variance $4 Favorable V b. The direct materials price variance should normally be reported to the Purchasing Department V If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor v 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 Department Previous Next Check My Work ems %24

54% AA A v2.cengagenow.com rt black girl dr... draw sunflower... CH 23 Homework CengageNO... Why (willitei00. Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: 145,000 lb. at $2.80 Standard: 150,000 lb. at $2.75 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 $4 Unfavorable Quantity variance Favorable V Total direct materials cost variance $4 Favorable V b. The direct materials price variance should normally be reported to the Purchasing Department V If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor v 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 Department Previous Next Check My Work ems %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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54% AA A v2.cengagenow.com rt black girl dr... draw sunflower... CH 23 Homework CengageNO... Why (willitei00. Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: 145,000 lb. at $2.80 Standard: 150,000 lb. at $2.75 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 $4 Unfavorable Quantity variance Favorable V Total direct materials cost variance $4 Favorable V b. The direct materials price variance should normally be reported to the Purchasing Department V If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor v 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 Department Previous Next Check My Work ems %24
Transcribed Image Text:54% AA A v2.cengagenow.com rt black girl dr... draw sunflower... CH 23 Homework CengageNO... Why (willitei00. Direct Materials Variances The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: 145,000 lb. at $2.80 Standard: 150,000 lb. at $2.75 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 $4 Unfavorable Quantity variance Favorable V Total direct materials cost variance $4 Favorable V b. The direct materials price variance should normally be reported to the Purchasing Department V If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor v 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 Department Previous Next Check My Work ems %24
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