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Direct Materials Variances The following data relate to the direct materials cost for the production of automobile tires: Actual: 57,300 lbs. at $1.90 per ib. Standard: 59,000 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance OUG Favorable Favorable Favorable

Direct Materials Variances The following data relate to the direct materials cost for the production of automobile tires: Actual: 57,300 lbs. at $1.90 per ib. Standard: 59,000 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance OUG Favorable Favorable Favorable

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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Direct Materials Variances The following data relate to the direct materials cost for the production of automobile tires: Actual: 57,300 lbs. at $1.90 per lb. Standard: 59,000 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance 006 Feedback Favorable ✓ Favorable ✓ Favorable b. The direct materials price variance should normally be reported to the Purchasing Department of production efficiencies, the variance would be reported to the Production Supervisor higher-quality raw materials, the variance should be reported to the Purchasing Department V. ✔. When lower amounts of direct materials are used because V. When the favorable use of raw materials is caused by the purchase of Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The direct material cost variance is the difference between the actual and standard material cost per quantity manufactured.
Transcribed Image Text:Direct Materials Variances The following data relate to the direct materials cost for the production of automobile tires: Actual: 57,300 lbs. at $1.90 per lb. Standard: 59,000 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance 006 Feedback Favorable ✓ Favorable ✓ Favorable b. The direct materials price variance should normally be reported to the Purchasing Department of production efficiencies, the variance would be reported to the Production Supervisor higher-quality raw materials, the variance should be reported to the Purchasing Department V. ✔. When lower amounts of direct materials are used because V. When the favorable use of raw materials is caused by the purchase of Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The direct material cost variance is the difference between the actual and standard material cost per quantity manufactured.
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