Ikon Tire Co. manufactures automobile tires. Standard Costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 36,000 tires were as follows:

Standard Cost Actual Cost
Direct Materials 72,000 pounds at $4.50 73,100 pounds at $4.80
Direct Labor 18,000 hours at $18.00 18,500 hours at $17.88
Factory Overhead Rates per direct labor hour, based on 100% of normal capacity of 20,000 direct labor hours:
Variable cost, $2.40 $42,870 variable cost
Fixed cost, $3.75 $75,000 fixed cost

Each tire requires 0.50 hour of direct labor.

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

Ikon Tire Co. manufactures automobile tires. Standard Costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 36,000 tires were as follows:

Standard Cost Actual Cost

Direct Materials 72,000 pounds at $4.50 73,100 pounds at $4.80
Direct Labor 18,000 hours at $18.00 18,500 hours at $17.88
Factory Overhead Rates per direct labor hour, based on 100% of normal capacity of 20,000 direct labor hours:
Variable cost, $2.40 $42,870 variable cost
Fixed cost, $3.75 $75,000 fixed cost

Each tire requires 0.50 hour of direct labor.

Instructions

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

(a) the price variance the price variance, quantity variance, and total direct materials cost variance

In order to find the variance, we ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to compute price variance, quantity variance, total direct materials cost variance, rate variance, time variance, total direct labor cost variance, variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.

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See attached file for proper format of tables.
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for 0 (less than or equal to) x (less than or equal to) 3.
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Can you help me get started with this assignment?
Company manufactures only one product x. The company uses a standard cost system and has established the following standards per unit of product x:
Standard Quantity Standard Price Standard Cost
Direct Materials 3.0 lbs.

Question 1 XYZ Tire Company has gotten an order for its manufacturing business segment of 30,000 tires. Below is the standard cost and quantity of materials needed to make one tire.
Rubber in one tire: 8 pounds of rubber
Cost per pound of rubber: $1.50
Steel used in tire: 2 pounds of steel
Cost per pound of steel:

XYZ Tire Company has gotten an order for its manufacturing business segment of 25,000 tires. Using job order costing, figure out the total unit cost of manufacturing a tire and the total order.
Rubber in one tire: 8 pounds of rubber
Cost per pound of rubber: $1.50
Steel used in tire: 2 pounds of steel
Cost per pound