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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