Chapter 23 Performance Evaluation using variances from standard costs 1117 PR 23-3B Direct materials, direct labor, factory overhead cost variance analysis and OBJ., 3, 4 Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead manufacture of tires were as follows: incurred for the Actual Costs Standard Costs Direct materials 100,000 lbs. at $640 101,000 lbs at $650 Direct labor 2,080 hrs, at $15.75 2,000 hrs, at $15.40 Factory overhead Rates per direct labor hr. based on 100% of normal capacity of 2,000 direct labor hrs. Variable cost, $4.00 $8.200 variable cost $12,000 fixed cost Fixed cost, $6.00 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 vari- ance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Chapter 23 Performance Evaluation using variances from standard costs 1117 PR 23-3B Direct materials, direct labor, factory overhead cost variance analysis and OBJ., 3, 4 Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead manufacture of tires were as follows: incurred for the Actual Costs Standard Costs Direct materials 100,000 lbs. at $640 101,000 lbs at $650 Direct labor 2,080 hrs, at $15.75 2,000 hrs, at $15.40 Factory overhead Rates per direct labor hr. based on 100% of normal capacity of 2,000 direct labor hrs. Variable cost, $4.00 $8.200 variable cost $12,000 fixed cost Fixed cost, $6.00 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 vari- ance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance