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 78,000 units of product were as follows:

Standard Costs Actual Costs Direct materials 210,600 lbs. at $5.50 208,500 lbs. at $5.30 Direct labor 19,500 hrs. at $18.00 19,950 hrs. at $18.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $3.90 $75,290 variable cost Fixed cost, $6.20 $126,170 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 Materials Price Variance $fill in the blank 1 Direct Materials Quantity Variance $fill in the blank 3 Total Direct Materials Cost Variance $fill in the blank 5

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 $fill in the blank 7 Direct Labor Time Variance $fill in the blank 9 Total Direct Labor Cost Variance $fill in the blank 11

c. Determine the variable factory overhead controllable variance, 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 $fill in the blank 13 Fixed factory overhead volume variance $fill in the blank 15 Total factory overhead cost variance $fill in the blank 17