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 7,200 units of product were as follows: Standard Costs Actual Costs Direct materials 9,400 lb. at $5.70 9,300 lb. at $5.50 Direct labor 1,800 hrs. at $17.60 1,840 hrs. at $17.80 Factory overhead Rates per direct labor hr., based on 100% of normal