Question 15The budgeted and actual costs at Goodyear Company is as follows:Budgeted costsMaterials (per tire): 12 lbs @Actual costsTotal materials purchased: 849,600 1bs$1.80/1bLabor (per tire): 4 hrs. @ S14/hrFactory O/H (per tire): 3 hrs. @$8/hrTotal cost of purchase: $1,571,760Total material used: 849,600 lbsLabor (per tire): 4.1 hrs @ S13/hrFactory O/H (per tire): 2.8 hrs @$8.50/hrDuring October, Goodyear produced 72,000 tires.The direct materials quantity variance is:$25,920 (U)$44,400 (F)$25,920 (F)$44,400 (U)

Computation of the direct material quantity variance is as follows:

The budgeted and actual costs at Goodyear Company is as follows: Budgeted costs Materials (per tire): 12 lbs @ $1.80/1b Labor (per tire): 4 hrs. @ $14/hr Factory O/H (per tire): 3 hrs. @ $8/hr Actual costs Total materials purchased: 849,600 1bs Total cost of purchase: $1,571,760 Total material used: 849,600 lbs Labor (per tire): 4.1 hrs @ $13/hr Factory O/H (per tire): 2.8 hrs @ $8.50/hr During October, Goodyear produced 72,000 tires. The direct materials quantity variance is:

The budgeted and actual costs at Goodyear Company is as follows: Budgeted costs Materials (per tire): 12 lbs @ $1.80/1b Labor (per tire): 4 hrs. @ $14/hr Factory O/H (per tire): 3 hrs. @ $8/hr Actual costs Total materials purchased: 849,600 1bs Total cost of purchase: $1,571,760 Total material used: 849,600 lbs Labor (per tire): 4.1 hrs @ $13/hr Factory O/H (per tire): 2.8 hrs @ $8.50/hr During October, Goodyear produced 72,000 tires. The direct materials quantity variance is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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