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Goldstone Rubber Company makes rubber tires. · Each tire should take 10 pounds (lbs) of rubber...

Goldstone Rubber Company makes rubber tires. · Each tire should take 10 pounds (lbs) of rubber and rubber should cost $1 per lb. · Each tire should take 3 hrs to make and labor should cost $15 per hour The company actually made 12,000 tires. The Actual price of rubber was $1.05 per lb. The actual rubber used in production this month was 12,200 lbs. The actual hourly rate paid for labor was $14.90 per hour. The actual labor hours used in production this month were 36,200 hours.

Required: 1. Compute the materials price variance and the Materials quantity variance

2. Compute the Labor price (or rate) variance and the labor quantity (or efficiency) variance.

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