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Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: 55,800 lbs. at $1.9 per lb. Standard: 54,100 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance b. The direct materials price variance should normally be reported to the production efficiencies, the variance would be reported to the quality raw materials, the variance should be reported to the Actual: When lower amounts of direct materials are used because of When the favorable use of raw materials is caused by the purchase of higher-

Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: 55,800 lbs. at $1.9 per lb. Standard: 54,100 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance b. The direct materials price variance should normally be reported to the production efficiencies, the variance would be reported to the quality raw materials, the variance should be reported to the Actual: When lower amounts of direct materials are used because of When the favorable use of raw materials is caused by the purchase of higher-

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 2,500 automobile tires: Actual: 55,800 lbs. at $1.9 per lb. Standard: 54,100 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance b. The direct materials price variance should normally be reported to the production efficiencies, the variance would be reported to the quality raw materials, the variance should be reported to the When lower amounts of direct materials are used because of When the favorable use of raw materials is caused by the purchase of higher-
Transcribed Image Text:Direct Materials Variances The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: 55,800 lbs. at $1.9 per lb. Standard: 54,100 lbs. at $1.95 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance b. The direct materials price variance should normally be reported to the production efficiencies, the variance would be reported to the quality raw materials, the variance should be reported to the When lower amounts of direct materials are used because of When the favorable use of raw materials is caused by the purchase of higher-
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