Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, directlabor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows:Standard CostsActual CostsDirect materials265,200 Ibs. at $5.10262,500 Ibs. at $490Direct labor19,500 hrs. at $18.1019,950 hrs. at $18.50Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 20,350 directlabor hrs.:Variable cost, $4.70$90,730 variable costFixed cost, $7.40$150,590 fixed costEach unit requires 0.25 hour of direct labor.Required: 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 costvariance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as apositive number.52,500 xFavorable vDirect Materials Price VarianceDirect Materials Quantity Variance13,770 xFavorable v66,270 xFavorableTotal Direct Materials Cost Varianceb. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter afavorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.7,980 vUnfavorable vDirect Labor Rate VarianceDirect Labor Time Variance8,145Unfavorable vTotal Direct Labor Cost Variance16,125Unfavorablec. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and totalfactory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and anunfavorable variance as a positive number.Variable factory overhead controllable variance$4920 XFavorable vFixed factory overhead volume variance2,960 xUnfavorableTotal factory overhead cost variance2,960 xUnfavorable

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Description: Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, directlabor, and factory overhead incurred for the manufacture of

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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 Actual Costs Direct materials 265,200 Ibs. at $5.10 262,500 Ibs. at $4.90 Direct labor 19,500 hrs. at $18.10 19,950 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.70 $90,730 variable cost Fixed cost, $7.40 $150,590 fixed cost Each unit requires 0.25 hour of direct labor. Required:

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 Actual Costs Direct materials 265,200 Ibs. at $5.10 262,500 Ibs. at $4.90 Direct labor 19,500 hrs. at $18.10 19,950 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.70 $90,730 variable cost Fixed cost, $7.40 $150,590 fixed cost Each unit requires 0.25 hour of direct labor. Required:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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