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 40,000 units of product were as follows: Direct materials 120,000 lb. at $3.20 12,000 hrs. at $24.40 Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.: Variable cost, $8.00 Fixed cost, $10.00 Each unit requires 0.3 hour of direct labor. Direct labor Factory overhead Standard Costs Required: Actual Costs 118,500 lb. at $3.25 11,700 hrs. at $25.00 $91,200 variable cost $150,000 fixed cost 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. $ 5,925 Unfavorable Direct materials price variance Direct materials quantity variance -30,400 X Favorable

Direct Hateriah, Direct Labor, and Factery Overbead Cost Varince Analysis Mackinaw the, processes a base chemkeal into plastie. Standacd costs and actual costs for direct materials, direct labor, and factory everhead incurred far the menutacture of 45,000 units of product were as foliows: Each unit reguires 0.3 hour of direct labar. Rtequired a. Determine the direct matenais price varance, Girect materials cuantity variance, and total direct msterials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfovorable varance as a positive mumber. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negatlve number using a vinus sign and an unfavorable variance as a positive number. C. Determine the variable factory overhead controliable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorabin variance as a negative number using a minus sign and an unfavorable variance as a positive number. * Chece Wy Who Untavorabie variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The variabie factory ovechead controllable variance is the difference between the actual variable overhead costs and the budgeted variabie overhead for actual