Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi! I n eed help with problem. Thanks a bunch! :) Chapter 22 Performance Evaluation Using Variances from Standard Costs 1069 va. Direct materials price

Hi! I n

image text in transcribed

eed help with problem.

Thanks a bunch! :)

Chapter 22 Performance Evaluation Using Variances from Standard Costs 1069 va. Direct materials price variance, $10,100 PR 22-3B Direct materials, direct labor, and factory overhead cost variance OBJ. 3, 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: Actual Costs 101,000 lbs, at $6.50 2,000 hrs, at $1540 Standard Costs Direct materials Direct labor Factory overhead 100000 Ibs at $6.40 2,080 hrs, at $15.75 Rates per direct labor ht, based on 1 00% of normal capacity of 2,000 direct labor hrs Variable cost, $4.00 Fixed cost, $6.00 58,200 variable cost 12,000 fixed cost Each tire requires 0.5 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 vari- ance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead oost variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1118725786, 978-1118725788

More Books

Students also viewed these Accounting questions