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:

$\backslash$table$[[,$Standard Costs,Actual Costs$],[$Direct materials,$249,600$ lbs$.$ at $$5\mathrm{.}80$ per lb$.,247,100$ lbs$.$ at $ $5\mathrm{.}70$ per lb$.],[$Direct labor,$19,500$ hrs$.$ at $$18\mathrm{.}00$ per hr$.,19,950$ hrs$.$ at $$18\mathrm{.}30$ per hr$.],[$Factory overhead,Rates per direct labor hr$.,$ based on $100\%$ of normal capacity of $20,350$ direct labor hrs$.$:$,],[,$Variable cost, $$4\mathrm{.}30,$$$83,010$ variable cost$],[,$Fixed cost, $$6\mathrm{.}80,$$$138,380$ 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 anfavorable variance as a positive number.

Direct Materials Price Variance

Direct Materials Quantity Variance

Total Direct Materials Cost Variance

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$

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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.