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

Santiago 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

$\backslash$table$[[$Direct materials,$210,600$ lbs$.$ at $$4\mathrm{.}60$ per lb$.,208,500lbs.$ at $$4\mathrm{.}40$ per lb$.],[$Direct labor,$19,500hrs.$ at $$18\mathrm{.}50$ per hr$.,19,950hrs,$ at $$18\mathrm{.}70$perhr.$],[,$Rates per direct labor hr$.,$ based on $100\%$ of normal,$],[$Factory overhead,capacity of $20,350$ direct labor hrs$.$:$,$$$88,800$ variable cost$],[,$Variable cost, $$4\mathrm{.}60,$$$148,555$ 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 favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials 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 $$

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Direct Labor Time Variance

Total Direct Labor Cost Variance $$

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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

Fixed factory overhead volume variance

Total factory overhead cost variance

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