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Use the information below to answer these questions What is the budgeted cost and actual cost, respectively, of producing one tire is (to the nearest

Use the information below to answer these questions

  • What is the budgeted cost and actual cost, respectively, of producing one tire is (to the nearest $)
  • What is the direct labor efficiency variance is:
  • What is the direct materials quantity variance is:
  • What is the direct materials price variance is:

The budgeted and actual costs at Goodyear Company is as follows:

Budgeted costs

Actual costs

Materials (per tire): 12 lbs @ $1.80/lb

Total materials purchased: 840,000lbs

Labor (per tire): 4 hrs. @ $14/hr

Total cost of purchase: $1,554,000

Factory O/H (per tire): 3 hrs. @ $8/hr

Total material used: 849,600 lbs

Labor (per tire): 4.1 hrs @ $13/hr

Factory O/H (per tire): 2.8 hrs @ $8.50/hr

During October, Goodyear produced 72,000 tires.

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