V a. Direct materials price variance, $10,100 U PR 9-3B 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 101,000 lbs. at $6.50 2,000 hrs. at $15.40 Direct materials Direct labor Factory overhead EXCEL TEMPLATE 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 $8,200 variable cost $12,000 fixed cost Each tire requires 0.5 hour of direct labor. (Continued) 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. Controllable variance, $(1,450) F EXCEL TEMPLATE PR 9-4B Factory overhead cost variance report Obj. 4 Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the follow- ing factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. Variable costs: Indirect factory wages $247,500 Power and light 189,000 Indirect materials 52,500 Total variable cost $489,000 Fixed costs: Supervisory salaries $ 126,000 Depreciation of plant and equipment 70,000 Insurance and property taxes 44,000 Total fixed cost 240,000 Total factory overhead cost $729,000 During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insur- ance and property taxes, $44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours, V a. Direct materials price variance, $10,100 U PR 9-3B 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 101,000 lbs. at $6.50 2,000 hrs. at $15.40 Direct materials Direct labor Factory overhead EXCEL TEMPLATE 100,000 lbs. at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.00 Fixed cost, $6.00 $8,200 variable cost $12,000 fixed cost Each tire requires 0.5 hour of direct labor. (Continued) 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. Controllable variance, $(1,450) F EXCEL TEMPLATE PR 9-4B Factory overhead cost variance report Obj. 4 Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the follow- ing factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. Variable costs: Indirect factory wages $247,500 Power and light 189,000 Indirect materials 52,500 Total variable cost $489,000 Fixed costs: Supervisory salaries $ 126,000 Depreciation of plant and equipment 70,000 Insurance and property taxes 44,000 Total fixed cost 240,000 Total factory overhead cost $729,000 During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insur- ance and property taxes, $44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours
