Question

he following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 59,100 lbs. at $1.8 per lb. Standard: 60,900 lbs. at $1.75 per lb. 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. Direct Materials Price Variance $ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $ b. The direct materials price variance should normally be reported to the . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the

Answer #1

Direct material price variance=(Standard cost of actual quantity-Actual cost) | ||||

Standard cost for actual quantity=(59100*1.75) =103425 | ||||

Actual cost = 106380 | ||||

Variance=(103425-106380) | ||||

-2955 |
Unfavourable |

Direct material usage variance=(Standard cost of standard quantity for actual production -Standard cost of actual quantity) | ||||

(SQ*SP) - (AQ*SP) | ||||

SQ*SP = | 60900*1.75 | 106575 | ||

AQ*SP= | 59100*1.75 | 103425 | ||

Variance =(106575-103425) | ||||

3150 |
favourable |

Direct material cost
variance=(Standrad cost-Actual cost) |
|||

Standard cost (60900*1.75) =106575 | |||

Actual cost =106380 | |||

Vriance=(106575-106380) | |||

195 |
favourable |

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The following data relate to the direct materials cost for the
production of 2,100 automobile tires:
Actual:
51,900 lbs. at $1.75 per lb.
Standard:
52,900 lbs. at $1.70 per lb.
a. Determine the direct materials price
variance, direct materials quantity variance, and total direct
materials cost variance. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive
number.
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$
Direct Materials Quantity Variance
$...

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direct materials cost for the production of 1,800 automobile tires:
Actual: 59,500 lbs. at $1.7 per lb. Standard: 58,300 lbs. at $1.75
per lb. 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. Direct
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The following data relate to the direct materials cost for the
production of 1,800 automobile tires:
Actual:
52,000 lbs. at $1.75 per lb.
Standard:
53,000 lbs. at $1.80 per lb.
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.
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production of 2,200 automobile tires:
Actual:
52,200 lbs. at $1.95 per lb.
Standard:
50,600 lbs. at $1.90 per lb.
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.
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Actual:
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Standard:
50,200 lbs. at $2.00 per lb.
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.
Direct Materials Price Variance
$
Direct Materials Quantity Variance
$...

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The following data relate to the direct materials cost for the
production of 2,100 automobile tires:
Actual:
60,300 lbs. at $1.75
$105,525
Standard:
58,500 lbs. at $1.8
$105,300
a. Determine the direct materials price
variance, direct materials quantity variance, and total direct
materials cost variance. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive
number.
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$
Quantity variance
$
Total direct materials cost variance
$...

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production of 2,000 automobile tires:
Actual:
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Standard:
55,800 lbs. at $1.95 per lb.
a. Determine the direct materials price
variance, direct materials quantity variance, and total direct
materials cost variance. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive
number.
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$
Direct Materials Quantity Variance
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Actual:
52,000 lbs. at $1.9
$98,800
Standard:
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$98,280
a. Determine the direct materials price
variance, direct materials quantity variance, and total direct
materials cost variance. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive
number.
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$
Quantity variance
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production of 2,200 automobile tires:
Actual:
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Standard:
55,600 lb. at $1.95
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
$
Quantity variance
$
Total direct materials cost variance
$

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Actual:
49,500 lbs. at $1.9 per lb.
Standard:
51,000 lbs. at $1.95 per lb.
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.
Direct Materials Price Variance
$
Direct Materials Quantity Variance
$...

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