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Novosadov [1.4K]
3 years ago
5

The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Business
1 answer:
Murljashka [212]3 years ago
8 0

Answer and Explanation:

The computation is given below:

Direct Material price variance is

= ($1.70 per lb - $1.65 per lb) × 55,500 lbs.

= $2,775 Unfavorable

Direct Material quantity variance is

= (55,500 lbs. - 56,600 lbs.) × $1.65 per lb

= $-1,815 Favorable

Total Direct Materials Cost Varianceis

= Actual Materials Cost  - Standard Materials Cost  

= (55,500 lbs. × $1.70 per lb) - (56,600 lbs. × $1.65 per lb)

= $94,350 - $93,390

= $960 Unfavorable

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Explanation:

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Answer:

The statement is: True.

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Although a part of your question is missing, you might be referring to this question:

Match each description with the corresponding group performance factor that best describes it.

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