Direct Materials Variances
The following data relate to the direct materials cost for the production of automobile tires:
Actual: 60,900 lbs. at $1.85 per lb.
Standard: 59,700 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.
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 $\boxed{}$ . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the $\boxed{}$ . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the $\boxed{}$ .