Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...

 

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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 74,000 units f product were as follows: Actual Costs Standard Costs 192,400 lbs. at $4.90 18,500 hrs. at $17.40 Rates per direct labor hr., 190,500 lbs. at $4.70 18,930 hrs. at $17.70 based on 100% of normal capacity of 19.310 direct labor hrs.: Direct materials Direct labor Factory overhead Variable cost, $3.10 Fixed cost, $4.90 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 Direct Materials Quantity Variance Total 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 sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Unfavorable - ✓ Direct Labor Time Variance Total Direct Labor Cost Variance 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 - ✓ 5 $56,780 variable cost $94,619 fixed cost $ $ $ Favorable Favorable Favorable Unfavorable 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 74,000 units f product were as follows: Actual Costs Standard Costs 192,400 lbs. at $4.90 18,500 hrs. at $17.40 Rates per direct labor hr., 190,500 lbs. at $4.70 18,930 hrs. at $17.70 based on 100% of normal capacity of 19.310 direct labor hrs.: Direct materials Direct labor Factory overhead Variable cost, $3.10 Fixed cost, $4.90 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 Direct Materials Quantity Variance Total 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 sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Unfavorable - ✓ Direct Labor Time Variance Total Direct Labor Cost Variance 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 - ✓ 5 $56,780 variable cost $94,619 fixed cost $ $ $ Favorable Favorable Favorable Unfavorable Unfavorable ✓ ✓ ✓

Answer rating: 100% (QA)

a Direct materials price variance 38100 Favorable AQ x AR SR 190500 x 470 ... View the full answer