Direct Materials Variances The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 55,100 Ibs. at $1.95 per Ib. Standard: 56,800 Ibs. at $2.00 per Ib. 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 Favorable V Direct Materials Quantity Variance Favorable v Total Direct Materials Cost Variance Favorable v
Direct Materials Variances The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 55,100 Ibs. at $1.95 per Ib. Standard: 56,800 Ibs. at $2.00 per Ib. 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 Favorable V Direct Materials Quantity Variance Favorable v Total Direct Materials Cost Variance Favorable v
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Refer to the picture
Transcribed Image Text:Direct Materials Variances
The following data relate to the direct materials cost for the production of 1,800 automobile tires:
Actual:
55,100 Ibs. at $1.95 per Ib.
Standard:
56,800 Ibs. at $2.00 per Ib.
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
Favorable
Direct Materials Quantity Variance
Favorable
Total Direct Materials Cost Variance
Favorable
Expert Solution
Step 1
Variance analysis is very important technique of comparing actual costs with standard costs and corrective actions are taken on that basis
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education