The following data relate to the direct materials cost for the production of 2,000 automobile tires: Actual:

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The following data relate to the direct materials cost for the production of 2,000 automobile tires:

Actual: …....….. 54,600 lbs. at $1.80 ………….. $98,280

Standard: ……. 53,400 lbs. at $1.85 ……..…… $98,790

(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: 978-0538749091

5th Edition

Authors: Carl S Warren

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Question Posted: Oct 21, 2011 05:05 AM

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The following data relate to the direct materials cost for the production of 2,000 automobile tires: Actual:

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Survey of Accounting

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