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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: Direct materials Direct labor Standard Costs Factory overhead 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: a. Determine the direct materials price variance, direct rials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance Actual Costs 101,000 lbs. at $6.50 2,000 hrs. at $15.40 S $8,200 variable cost $12,000 fixed cost b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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: Direct materials Direct labor Standard Costs Factory overhead 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: a. Determine the direct materials price variance, direct rials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance Actual Costs 101,000 lbs. at $6.50 2,000 hrs. at $15.40 S $8,200 variable cost $12,000 fixed cost b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: $12,000 fixed cost a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using at minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance i
Transcribed Image Text:Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: $12,000 fixed cost a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using at minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance i
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: Direct materials Direct labor Factory overhead Standard Costs 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr, based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: a. Determine the direct materials price variance, direct i (als quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance Actual Costs 101,000 lbs. at $6.50 2,000 hrs. at $15.40 S $8,200 variable cost $12,000 fixed cost b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Transcribed Image Text: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: Direct materials Direct labor Factory overhead Standard Costs 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr, based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 Each tire requires 0.5 hour of direct labor. Required: a. Determine the direct materials price variance, direct i (als quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance Quantity variance Total direct materials cost variance Actual Costs 101,000 lbs. at $6.50 2,000 hrs. at $15.40 S $8,200 variable cost $12,000 fixed cost b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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