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1) Borges Distributors manufactures auto tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160
1) Borges Distributors manufactures auto 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: Standard costs Actual costs Direct materials 100,000 lbs @ $6.40 101,000 lbs. @6,50 Direct labor 2,080 hrs at $15.75 2,000 hrs at $15.40 Factory overhead Rates for DL hr. based on 100% of normal capacity of 2,000 direct labor bus Variable cost $4.00 Fixed cost, $6.00 8,200 variable cost $12,000 fixed costs Each tire requires .5 hour of direct labor Determine A) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; B) the direct labor rate variance, direct labor time variance, and total direct labor cost variance, and C) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance
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