1/ c. Controllable variance, $2,400 U PR 23-3A Direct materials. direct labor. and factory overhead Obi. 3, 4 cost variance analysis Santiago 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: Standard Costs Actual Costs Direct materials 240,000 lbs. at 5:140 per lb. 237,000 lbs. at $650 per Ib' Direct labor 12,000 hrs. at $24.20 per hr. 1 1,500 hrs. at $25.00 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.: Variable cost. $2.50 $32,400 variable cost Fixed cost, $5.00 $?5,000 fixed cost Each unit requires 0.3 hour of direct labor. Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, xed factory overhead volume variance, and total factory overhead cost variance