Roadmaster Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,500 tires were as follows:

Determine 

(a) The price variance, quantity variance, and total direct materials cost variance

(b) The rate variance, time variance, and total direct labor cost variance

(c) Variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.

Transcribed Image Text:

Actual Costs Standard Costs Direct materials Direct labor Factory overhead 82,000 Ibs. at $5.10 1,650 hrs. at $17.50 Rates per direct labor hr., based on 100% of normal capacity of 1,500 direct labor hrs.: Variable cost, $3.10 Fixed cost, $4.90 82,600 lbs. at $5.25 1,620 hrs. at $17.40 $5,000 variable cost $7,350 fixed cost