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 70,000 units of product were as follows:   Standard Costs Actual Costs Direct materials 224,000 lbs. at $5.30 221,800 lbs. at $5.10 Direct labor 17,500 hrs. at $16.70 17,900 hrs. at $17.10 Factory overhead Rates per direct labor hr.,     based on 100% of normal     capacity of 18,260 direct     labor hrs.:       Variable cost, $3.30 $57,170 variable cost     Fixed cost, $5.20 $94,952 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 Material Price Variance $ Favorable  Direct Materials Quantity Variance $ Favorable  Total Direct Materials Cost Variance $ Favorable  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  Direct Labor Time Variance $ Unfavorable  Total Direct Labor Cost Variance $ Unfavorable  c.  Determine variable factory overhead controllable variance, the 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 controllable variance $ Favorable  Fixed factory overhead volume variance $ Unfavorable  Total factory overhead cost variance $ Unfavorable

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 70,000 units of product were as follows:

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.

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.

c.  Determine variable factory overhead controllable variance, the 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.