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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows: Standard Costs Direct materials Actual Costs 239,400 lbs. at $5.30 19,950 hrs, at $17.00 Direct labor Factory overhead Variable cost, $3.60 $69,500 variable cost Fixed cost, $5.70 $115,995 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance ✓ Favorable Favorable Direct Materials Quantity Varlance $ Total Direct Materials Cost s Favorable ✓ Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Unfavorable $ Unfavorable Direct Labor Time Variance Total Direct Labor Cost $ Unfavorable v Variance c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead Favorable controllable variance 241,800 lbs. at $5.40 19,500 hrs. at $16.60 Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.:
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead Favorable controllable variance Fixed factory overhead volume Unfavorable variance Total factory overhead cost variance Unfavorable