Roadmaster Tire Co. Manufactures automobile tires. Standard cost - 13306

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

 

                                                                           Standard Costs                            Actual Cost

Direct materials                                        82,000 lbs. at $5.10                   82,600 lbs. at $5.25

Direct labor                                                  1,650 hrs. at $17.50                  1,620 hrs. at $17.40

Factory Overhead                                     Rates per direct labor hr.

                                                                           Based on 100% of normal

                                                                           Capacity of 1,500 direct

                                                                           Labor hrs.

                                                                              Variable cost $3.10                $5,000 variable cost

                                                                              Fixed cost $4.90                      $7,350 fixed cost.

 

Instructions

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

 

Here is the link of this Question text book, pl look at PR7-3b

(http://books.google.com.pk/books?id=Kfg86Pg8ei0C&pg=PA312&lpg=PA312&dq=Roadmaster+Tire+Co.+Manufactures+automobile+tires.+Standard+cost+and+actual+costs+for+direct&source=bl&ots=m4iq0Mw0_c&sig=cR-PLiIG7iqL4_CtONKHmXH5J0Q&hl=en&sa=X&ei=RE4iUPOmDcTCtAaKmICYCA&ved=0CFEQ6AEwAQ#v=onepage&q=Roadmaster%20Tire%20Co.%20Manufactures%20automobile%20tires.%20Standard%20cost%20and%20actual%20costs%20for%20direct&f=false)

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