Direct materials, direct labor, and factory overhead 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 Ibs. at 56.50 2.000 hrs. at $15.40 Direct materials 100,000 lbs at 56.40 2,080 hrs. at $1575 Rates per direct labor hr. Direct labor Factory overhead based on 100% of normal capacity of 2,000 direct labor hrs: Variable cost, $4.00 $8.200 variable cost Foxed cost, $6.00 $12.000 fxed cost
Direct materials, direct labor, and factory overhead 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 Ibs. at 56.50 2.000 hrs. at $15.40 Direct materials 100,000 lbs at 56.40 2,080 hrs. at $1575 Rates per direct labor hr. Direct labor Factory overhead based on 100% of normal capacity of 2,000 direct labor hrs: Variable cost, $4.00 $8.200 variable cost Foxed cost, $6.00 $12.000 fxed cost
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter13: Budgeting And Standard Costs
Section: Chapter Questions
Problem 13.7P
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