Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.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 CostsActual CostsDirect materials202,800 lbs. at $4.80200,800 lbs. at $4.70Direct labor19,500 hrs. at $16.8019,950 hrs. at $17.00Factory overheadRates per direct labor hr.,  based on 100% of normal  capacity of 20,350 direct  labor hrs.:   Variable cost, $4.40$84,940 variable cost  Fixed cost, $7.00$142,450 fixed costEach unit requires 0.25 hour of direct labor.Required:a.  Determine the direct materials Price variance is the difference between the actual and standard prices, multiplied by the actual quantity.price variance, direct materials The cost associated with the difference between the standard quantity and the actual quantity of direct materials used in producing a commodity.quantity variance, and total direct materials The difference between actual cost and standard cost at actual volumes.cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.Direct Materials Price Variance$Favorable  FavorableUnfavorableDirect Materials Quantity Variance$Favorable  FavorableUnfavorableTotal Direct Materials Cost Variance$Favorable  FavorableUnfavorableb.  Determine the direct labor The cost associated with the difference between the standard rate and the actual rate paid for direct labor used in producing a commodity.rate variance, direct labor The cost associated with the difference between standard and actual hours of direct labor spent for producing a commodity.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$Unfavorable  FavorableUnfavorableDirect Labor Time Variance$Unfavorable  FavorableUnfavorableTotal Direct Labor Cost Variance$Unfavorable  FavorableUnfavorablec.  Determine the variable factory overhead The difference between the actual variable overhead costs and the budgeted variable overhead for actual production.controllable variance, fixed factory overhead The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable variance$Favorable  FavorableUnfavorableFixed factory overhead volume variance$Unfavorable  FavorableUnfavorableTotal factory overhead cost variance$Unfavorable  FavorableUnfavorable