Direct Materials Variances The following data relate to the direct materials cos

Question

Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 60,800 lbs. at $1.9 $115,520 Standard: 59,600 lbs. at $1.85 $110,260 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

Explanation / Answer

Material price variance = (standard price-actual price)actual quantity

= (1.85-1.90)60800

Material price variance = 3040 Unfavourable

Material quantity variance = (standard quantity-actual quantity)standard price

= (59600-60800)1.85

Material quantity variance = 2220 Unfavourable

Material cost variance = Standard cost-actual cost

= 110260-115520

material cost variance = 5260 Unfavourable

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