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
Variable cost $3.10 $5,000 variable cost
Fixed cost $4.90 $7,350 fixed cost.
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.
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