Reference no: EM132837507

Problem - Direct Materials Variances - The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Actual: 54,600 lb. at $1.85

Standard: 55,700 lb. at $1.90

Required -

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.

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 ______________.