Direct Materials, Direct Labor and Factory overhead Cost Variance Analysis 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: Standard Costs Actual Costs Direct materials 00,000 lbs. at $6.40 01,000 lbs at $6.50 Direct labor 2,080 hrs, at $15.75 2,000 hrs, at $15A0 Rates per direct labor hr, Factory overhead based on 100% of normal capacity of 2,000 direct labor hrs: Variable cost,$4.00 $8,200 variable cost Fixed cost $600 $12,000 fixed cost Each tire requires 0.5 hour of direct labor