Direct Materials, Direct Laboc, and Factory Overhead Cost Variance Analysis

Eastern Polymers, 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 $5,600$ units of product were as follows:

Standard Costs

$\backslash$table$[[\backslash$table$[[$Direct materials$],[$Direct labor$]],7,300$ lbs$.$ at $$4\mathrm{.}6,7,200$ lbs$.$ at $$4\mathrm{.}5],[$Factory overhead,$1,400$ hrs$.$ at $ $$17\mathrm{.}9,1,430$ hrs$.$ at $$18\mathrm{.}1],[,$Rates per direct labor hr $,$ based on $100\%$ of normal capacity of $1,460$ direct labor hrs$.$:$,],[,$Variable cost, $$4\mathrm{.}5,$$$6,240$ variable cost$],[,$Fixed cost, $57\mathrm{.}1,$$$10,366$ fixed cost$]]$

Each unit requires $0\mathrm{.}25$ hour of direct labor.

Required:

a$.$ Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a fovorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price variance

Quantity variance

Total direct materials cost variance

$$ Favorable $$

$$ Favorable $$

$$

b$.$ Determine the direct labor rate variance, direct labor time variance, and total direct labor cost varlance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number

Rate variance $$

Time variance

$1$

Total direct labor cost variance $$

$$ Unfaverable: $$

$$

Untovorahie darr

$$Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a vorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

rice variance $$

Favorable $$

uantity variance $$

$$

$$

Favorable

$$

otal direct materials cost variance $$

Determine the direct labor rate variance, direct labor time variance, and total direct labor cost vartance. Enter a favorable variance

s a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance $$

Unfavorable $$

Iime variance

$ $$

Unfavorable

$$

Total direct labor cost variance

$ $$

$$

Unfavorable $$

$=.$ 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.

Variabie factory overhead controllable variance

$ $$ X $$ Favorable $$

Fixed factory overhead volume variance

$ $$ X $$ Unfavorable $$

Total factory overhead cost variance $$ X $$

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