Direct Materials VariancesThe following data relate to the direct materials cost for the production of 30,000 automobile tires:Actual:Standard:438,000 lb. at $3.00446,000 lb. at $2.95a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as anegative number using a minus sign and an unfavorable variance as a positive number.Price varianceQuantity varianceTotal direct materials cost varianceUnfavorableFavorableFavorable✓. If lower amounts of direct materials had beenb. The direct materials price variance should normally be reported to the Purchasing Departmentused because of production efficiencies, the variance would be reported to the Production Supervisor. If the favorable use of raw materials had beencaused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department

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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:Standard:438,000 lb. at $3.00446,000 lb. at $2.95a. Determine the direct materials price variance, direct materials

Variance analysis:It is the process of comparing expected and observed results. For instance, a…

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rect Materials Variances e following data relate to the direct materials cost for the production of 30,000 automobile tires: ctual: Candard: 438,000 lb. at $3.00 446,000 lb. at $2.95 Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a gative number using a minus sign and an unfavorable variance as a positive number. ice variance uantity variance tal direct materials cost variance Unfavorable Favorable Favorable The direct materials price variance should normally be reported to the Purchasing Department ✓. If lower amounts of direct materials had been ✓. If the favorable use of raw materials had been ed because of production efficiencies, the variance would be reported to the Production Supervisor used by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department

rect Materials Variances e following data relate to the direct materials cost for the production of 30,000 automobile tires: ctual: Candard: 438,000 lb. at $3.00 446,000 lb. at $2.95 Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a gative number using a minus sign and an unfavorable variance as a positive number. ice variance uantity variance tal direct materials cost variance Unfavorable Favorable Favorable The direct materials price variance should normally be reported to the Purchasing Department ✓. If lower amounts of direct materials had been ✓. If the favorable use of raw materials had been ed because of production efficiencies, the variance would be reported to the Production Supervisor used by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PB: Direct materials, direct labor, and factory overhead cost variance analysis Road Gripper Tire Co....

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