Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as follows:

Each tire requires 0.5 hour of direct labor.

Instructions Determine
(a) The direct materials price variance, direct materials quantity variance, and total direct materials cost variance;
(b) The direct labor rate variance, direct labor time variance, and total direct labor cost variance;
(c) The variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead costvariance.

Transcribed Image Text:

Standard Costs Actual Costs Direct materials Direct labor Factory overhead 101,000 Ibs. at $6.50 100,000 lbs, at $640 2,080 hrs. at $15.75 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct abor hrs 2,000 hrs at $15A0 Variable cost, $4.00 8200 variable cost Fixed cost, $6.00 $12,000 fxed cost