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Tough Tires Inc. manufactures 500 motorcycle tires per month. It had estimated that it would require 2,700 lbs. of rubber per month at $2.5 per
Tough Tires Inc. manufactures 500 motorcycle tires per month. It had estimated that it would require 2,700 lbs. of rubber per month at $2.5 per lb. to manufacture 500 tires. During the month of June, it required 3,000 lbs. of rubber at $2.25 per lb. to produce 500 tires. What is the direct materials quantity variance for the company?
My calculation says they break even but the book says something different. I need to know what I'm doing wrong.
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