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Im stuck part B and C i appreciate the help. 5 PR 8-3B Direct materials, direct labor, and factory overhead Obj. 3, 4 cost variance
Im stuck part B and C i appreciate the help.
5 PR 8-3B Direct materials, direct labor, and factory overhead Obj. 3, 4 cost variance 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: Standard Costs Actual Costs Direct materials 100,000 lbs. at $6.40 101,000 lbs. at $6.50 Direct labor 2,080 hrs. at $15.75 2,000 hrs. at $15.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 $8,200 variable cost Fixed cost, $6.00 $12,000 fixed cost Each tire requires 0.5 hour of direct labor. Instructions 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. Total direct materials cost variance $ 16,500 unfavorable Direct Labor Cost Variance $15.40 15.75 Rate variance: Actual rate per hour Standard rate per hour Variance Actual hours Direct labor rate variance 2,000 $ (700) favorable Time variance: Actual direct labor hours Standard direct labor hours Variance Standard rate per hour Direct labor time variance Total direct labor cost variance Pr. 22(8)-3B O Type here to search wolfgang Fiasconero WF - Search Help le AutoSave O R A B WD PinMan 141.PR 2200)-30 . p Home Insert Page Layout Formulas DataReview View Developer Ariel - 10 A === Wrap Test BTW-E- A- Merge Center Share o % 9 - & Find & Ideas MNOPQRSTUVWXYZ MALAGADE Alternative Computation of Overhead Variances Factory Overhead Cost Variance Variable factory overhead controllable variance Actual variable FO cost incurred Budgeted vanable FO cost for 2,080 hrs Foodfadory overhead volume variance Hours at normal capacity Standard hours for amount produced Productive capacity not used Standard tedFO cost rate Variance Applied Factory Budgeted Fadory Overhead for Amount Produced Variable cost Ford cost Total factory overhead costvariance TO Overhead Cost Pr. 2200B - Type here to search Step by Step Solution
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