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Chapter 7 Performance Evaluation Using Variances from Standard Costs 317 PR 7-3B Direct materials, direct labor, and factory overhead cost variance OBJ. ,4 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 56.40 101,000 lbs. at $6.50 Direct labor 2,080 hrs. at $15.75 2,000 hrs. at $15.40 Factory overhead Rates per direct labore based on 100% of normal capacity of 2,000 direct labor hes: Variable cost. 54.00 $8.200 variable cost Fixed cost, $6.00 $12,000 fued 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 varian ance, 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