Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis 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 numberusing a minus sign and an unfavorable variance as a positive number.Direct materials price varianceDirect materials quantity varianceTotal direct materials cost variance$b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus signand an unfavorable variance as a positive number.Direct labor rate variance$Direct labor time varianceTotal direct labor cost variancec. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance asa negative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable variance$Fixed factory overhead volume varianceTotal factory overhead cost variance 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, direct labor, and factory overhead incurred for the manufacture of7,200 units of product were as follows:Standard CostsActual CostsDirect materials9,400 lb. at $5.209,300 Ib. at $5.00Direct labor1,800 hrs. at $16.101,840 hrs. at $16.30Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 1,880 directlabor hrs.:Variable cost, $4.30$7,660 variable costFixed cost, $6.80$12,784 fixed costEach unit requires 0.25 hour of direct labor.

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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 7,200 units of product were as follows: Standard Costs Actual Costs Direct materials 9,400 Ib. at $5.20 9,300 Ib. at $5.00 Direct labor 1,800 hrs. at $16.10 1,840 hrs. at $16.30 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $4.30 $7,660 variable cost Fixed cost, $6.80 $12,784 fixed cost Each unit requires 0.25 hour of direct labor.

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 7,200 units of product were as follows: Standard Costs Actual Costs Direct materials 9,400 Ib. at $5.20 9,300 Ib. at $5.00 Direct labor 1,800 hrs. at $16.10 1,840 hrs. at $16.30 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $4.30 $7,660 variable cost Fixed cost, $6.80 $12,784 fixed cost Each unit requires 0.25 hour of direct labor.

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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