Road ready tire co | Accounting homework help

“Road Ready Tire Co. manufacturers automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 tires were as follows: Direct Materials: Standard cost 71,000lbs at $5.10 Actual Costs 70,600lbs at $5.00 Direct Labor: Standard Costs 1,300 hrs at $17.50 Actual Costs 1,330 hrs at $17.80 Factory Overhead: Standard Costs: Rates per direct labor hr., based on 100% of normal capacity of 1,350 direct labor hrs: Standard Costs Variable cost, $3.10 Actaul costs $4,000 variable cost Standard Costs Fixed cost, $4.90 Actual costs $6,615 fixed cost
Each tire requires 0.25 hour of direct labor.
Alternative Computation of Overhead Variances:
Factory Overhead
Actual Costs Applied Costs
Balance
Budgeted Factory
Actual Factory Overhead for Amount Applied Factory
Overhead Produced Overhead
Variable cost
Fixed cost
Total
F U
Controllable Volume 
Variance Variance
U
Total factory
overhead
cost variance 

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