1 The following data relate to factory overhead cost for the production of 6,000 computers Actual Variable factory overhead $163,000 Fixed factory overhead 70,000 Standard 6,000 hrs at $35 210,000 If productive capacity of 100 was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $238,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance The fixed factory overhead rate was $7 per hour Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Variance Amount Favorable Unfavorable Variable factory overhead controllable variance $ Fixed factory overhead volume variance Total factory overhead cost variance $ 2 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 $4 60 7,200 lb at $4 40 Direct labor 1,400 hrs at $18 30 1,430 hrs at $18 70 Factory overhead Rates per direct labor hr , based on 100 of normal capacity of 1,460 direct labor hrs Variable cost, $3 00 $4,160 variable cost Fixed cost, $4 70 $6,862 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 materials price variance $ Direct materials quantity variance Total direct materials cost variance $ 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 $ Direct labor time variance Total direct labor cost variance $ 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 $ Fixed factory overhead volume variance Total factory overhead cost variance $

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1. The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $163,000 Fixed factory overhead 70,000 Standard:

The following data relate to factory overhead cost for the production of 6,000 computers:

Actual:	Variable factory overhead	$163,000
	Fixed factory overhead	70,000
Standard:	6,000 hrs. at $35	210,000

If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $238,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Variable factory overhead controllable variance	$
Fixed factory overhead volume variance
Total factory overhead cost variance	$

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 $4.60		7,200 lb. at $4.40
Direct labor	1,400 hrs. at $18.30		1,430 hrs. at $18.70
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 1,460 direct
	labor hrs.:
		Variable cost, $3.00	$4,160 variable cost
		Fixed cost, $4.70	$6,862 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 materials price variance	$
Direct materials quantity variance
Total direct materials cost variance	$

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	$
Direct labor time variance
Total direct labor cost variance	$

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.