Direct Materials VariancesThe following data relate to the direct materials cost for the production of 30,000 automobile tires:Actual:438,000 lb. at $3.00Standard:446,000 lb. at $2.95a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter afavorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.Price varianceQuantity varianceTotal direct materials cost varianceb. The direct materials price variance should normally be reported to theIf lower amounts of direct materials hadbeen used because of production efficiencies, the variance would be reported to the. If the favorable use of rawmaterials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the%24%24%24

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Description: Direct Materials VariancesThe following data relate to the direct materials cost for the production of 30,000 automobile tires:Actual:438,000 lb. at $3.00Standard:446,000 lb. at $2.95a. Determine the direct materials price variance, direct materials

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The following data relate to the direct materials cost for the production of 30,000 automobile tires: Actual: 438,000 lb. at $3.00 Standard: 446,000 lb. at $2.95 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 %24 Quantity variance Total direct materials cost variance %24 b. The direct materials price variance should normally be reported to the If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the 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

The following data relate to the direct materials cost for the production of 30,000 automobile tires: Actual: 438,000 lb. at $3.00 Standard: 446,000 lb. at $2.95 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 %24 Quantity variance Total direct materials cost variance %24 b. The direct materials price variance should normally be reported to the If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the 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

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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