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Direct materials, direct labor, and factory overhead cost variance PR 22-3B analysis OBJ. 3, 4 a. Direct materials price variance, $10,100 U 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: Actual Costs 101,000 lbs. at $650 2,000 hrs. at $15.40 Standard Costs 100,000 lbs at $6.40 2,080 hrs. at $15.75 Rates per direct labor hr, based on 1 00% of normal capacity of 2,000 direct labor hrs. Direct materials Direct labor Factory overhead 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 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 vari ance, 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
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