factory overhead cost variance analysis

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 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 214,600 lbs. at $4.70 212,500 lbs. at $4.60 Direct labor 18,500 hrs. at $17.10 18,930 hrs. at $17.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.70 $86,080 variable cost Fixed cost, $7.40 $142,894 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. Direct Material Price Variance Favorable v -21,250 Direct Materials Quantity Variance -9,870 Favorable v Total Direct Materials Cost Variance -31,120 Favorable negative number using a minus sign and an unfavorable variance as a positive number Direct Labor Rate Variance 7,572 Unfavorable v Direct Labor Time Variance 7,353 Unfavorablev Total Direct Labor Cost Variance $ 14,925 Unfavorable 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 var ariance Favorable Fixed factory overhead volume variance Unfavorable Total factory overhead cost variance Unfavorable v Feedback Y Check My Work