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Question: direct materials direct labor and factory overhead cost variance analysis...

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Chapter 7 Performance Evaluation using variances from Standard Costs PR 7-3B Direct materials, direct labor, and factory overhead cost variance OBJ 3, 4 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 follows: Actual Costs Standard Costs 101,000 lbs at $6.50 Direct materials 100,000 lbs. at $640 2.000 hrs at $15.40 2.080 hrs, at $15.75 Direct labor Rates per direct labor hr, Factory overhead based on 100% of normal capacity of 2,000 direct labor hrs variable cost, S4.00 $8,200 variable cost $12,000 fixed cost Fixed cost, $600 Each tire requires 0.5 hour of direct labor. Instructions Determine G) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; the direct labor rate variance, direct labor time and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.
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