The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Actual:	51,700 lbs. at $1.70	$87,890
Standard:	50,700 lbs. at $1.75	$88,725

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	$	SelectFavorableUnfavorableItem 2
Quantity variance	$	SelectFavorableUnfavorableItem 4
Total direct materials cost variance	$	SelectFavorableUnfavorableItem 6

b. The direct materials price variance should normally be reported to the SelectPlant ManagerPurchasing DepartmentItem 7 . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the SelectPurchasing DepartmentProduction SupervisorItem 8 . 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 SelectPurchasing DepartmentProduction SupervisorItem 9 .