The following data relate to the direct materials cost for the production of automobile tires: Actual: 900,000

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The following data relate to the direct materials cost for the production of automobile tires:

Actual: 900,000 lbs. at $2.75 per lb.
Standard: 916,000 lbs. at $2.70 per lb.

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
b. To whom should the variances be reported for analysis and control?

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Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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Question Posted: Dec 12, 2022 04:34 AM

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The following data relate to the direct materials cost for the production of automobile tires: Actual: 900,000

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a b The direct materials price variance should normally be reported to the Purchasing Department whi...View the full answer

Financial And Managerial Accounting

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