Comprehensive Cost Variance Analysis (L.O.3): Tough Tire, Inc., manufactures construction equipment and farm machinery tires. The following information is available for June. Year 1.

1. Tough Tire produced and sold 4,500 tires at a price of $1,000 each. Budgeted production was 5.000 tires.

2. Standard variable costs per tire were as follows:

3. Fixed manufacturing overhead costs: 

4. Fixed overhead is applied at the rate of $380 per tire.

5. Actual production costs:

6. Machine hours: 21,600.

Required:

a. Prepare a comprehensive cost variance analysis for June for Tough Tire like the one in Illustration 19-10.

b. Prepare a fixed overhead cost variance analysis like the one in Illustration 19-12.

Transcribed Image Text:

Direct materials: 100 lbs. at $2.00 Direct labor: 20 hours at $9.00 Variable manufacturing overhead: 5 machine hrs. at $10.00 per hr. Total variable costs $200 180 50 $430