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 5,600 units of product were as follows:

Standard Costs Actual Costs

Direct materials 7,300 lb. at $6.00 7,200 lb. at $5.90

Direct labor 1,400 hrs. at $17.40 1,430 hrs. at $17.70

Factory overhead Rates per direct labor hr.,

based on 100% of normal

capacity of 1,460 direct

labor hrs.:

Variable cost, $4.40 $6,100 variable cost

Fixed cost, $7.00 $10,220 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.

Price variance $ U/F

Quantity variance $ U/F

Total direct materials cost variance $ U/F

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.

Rate variance $ U/F

Time variance $ U/F

Total direct labor cost variance $ U/F

c. Determine variable factory overhead controllable variance, the 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 $ U/F

Fixed factory overhead volume variance $ U/F

Total factory overhead cost variance $ U/F