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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 $6,400$ units of product were as follows:

Standard Costs Actual Costs

Direct materials $8,300$ lb$.$ at $$5\mathrm{.}808,200$ lb$.$ at $$5\mathrm{.}70$

Direct labor $1,600$ hrs$.$ at $$17\mathrm{.}901,640$ hrs$.$ at $$18\mathrm{.}20$

Factory overhead Rates per direct labor hr$.,$

based on $100\%$ of normal

capacity of $1,670$ direct

labor hrs$.$:

Variable cost, $$4\mathrm{.}80$ $$7,600$ variable cost

Fixed cost, $$7\mathrm{.}60$ $$12,692$ fixed cost

Each unit requires $0\mathrm{.}25$ 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 materials price variance $fill in the blank $1$

Direct materials quantity variance fill in the blank $3$

Total direct materials cost variance $fill in the blank $5$

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.

Direct labor rate variance $fill in the blank $7$

Direct labor time variance fill in the blank $9$

Total direct labor cost variance $fill in the blank $11$

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 $fill in the blank $13$

Fixed factory overhead volume variance fill in the blank $15$

Total factory overhead cost variance $fill in the blank $17$