Direct Materials and Direct Labor, Variance Analysis

Route 66 Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,400 tires were as follows:

	Standard Costs		Actual Costs
Direct materials	5,700 lbs. at $5.00		5,600 lbs. at $4.90
Direct labor	1,100 hrs. at $16.90		1,130 hrs. at $17.20

Required: a. Determine the price variance, quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Price variance Favorable Quantity variance Favorable Total direct materials cost variance Favorable b. Determine the rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Rate variance Unfavorable Time variance Unfavorable Total direct labor cost variance Unfavorable