SureGrip Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 39,000 tires were as follows:

 

Standard Costs

Actual Costs

Direct materials

68,000 pounds at $4.80

72,100 pounds at $5.20

Direct labor

15,600 hours at $16.00

15,400 hours at $15.70

 

 

 

Factory overhead

Rates per direct labor hour,

 

 

based on 100% of normal

 

 

capacity of 21,000 direct

 

 

labor hours:

 

 

Variable cost, $2.70

$41,650 variable cost

 

Fixed cost, $3.65

$76,650 fixed cost

Each tire requires 0.40 hour of direct labor.

Instructions

Determine (a) the price variance, quantity variance, and total direct materials cost variance; (b) the rate variance, time variance, and total direct labor cost variance; and (c) variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.