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

Sticky Polymers 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 10,750 units of product were as follows:

Standard Costs Actual Costs Direct materials 3,700 lbs. at $12.00 3,500 lbs. at $12.50 Direct labor 4,200 hrs. at $2040 4,300 hrs. at $20.00 Factory overhead Rates per direct labor hr, based on 100% of normal capacity of 4,500 direct labor hrs: Variable cost, $4.00 $16,800 variable cost Fixed cost, $3.00 $13,500 fixed cost Each unit requires 0.4 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 Unfavorable Quantity variance Favorable Total direct materials cost variance ble