The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: Standard: 55,600 lb. at $1.80 53,900 lb. at $1.75 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative numbe using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance b. The direct materials price variance should normally be reported to the efficiencies, the variance would be reported to the materials, the variance should be reported to the If lower amounts of direct materials had been used because of production . If the favorable use of raw materials had been caused by the purchase of higher-quality raw
The following data relate to the direct materials cost for the production of 2,500 automobile tires: Actual: Standard: 55,600 lb. at $1.80 53,900 lb. at $1.75 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative numbe using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance b. The direct materials price variance should normally be reported to the efficiencies, the variance would be reported to the materials, the variance should be reported to the If lower amounts of direct materials had been used because of production . If the favorable use of raw materials had been caused by the purchase of higher-quality raw
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
i need the answer quickly
Transcribed Image Text:The following data relate to the direct materials cost for the production of 2,500 automobile tires:
Actual:
Standard:
55,600 lb. at $1.80
53,900 lb. at $1.75
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
Quantity variance
Total direct materials cost variance
b. The direct materials price variance should normally be reported to the (
efficiencies, the variance would be reported to the
materials, the variance should be reported to the
If lower amounts of direct materials had been used because of production
If the favorable use of raw materials had been caused by the purchase of higher-quality raw
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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