The following data relate to the direct materials cost for the production of 20,000 automobile tires: a.

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The following data relate to the direct materials cost for the production of 20,000 automobile tires:

Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000

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

b. To whom should the variances be reported for analysis and control?

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Survey Of Accounting

ISBN: 9780357132593

9th Edition

Authors: Carl S. Warren, Amanda Farmer

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Question Posted: Sep 25, 2020 07:31 AM

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The following data relate to the direct materials cost for the production of 20,000 automobile tires: a.

Question:

Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000

Step by Step Answer:

a Price variance Direct Materials Price Variance Actual Price Standard Price Actual Quantity 265 per ...View the full answer

Survey Of Accounting

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