13 Direct Materials Cost Variance 14 | a. 15 16 17 18 19 20 21 Price variance: Actual price (per lb.) Standard price (per lb.) Variance Actual quantity (Ib.) Direct materials price variance Quantity variance: Actual quantity (Ib.) Standard quantity (Ib.) Variance Standard price 23 24 25 26 27 28 29 30 31 32 b. Direct materials price variance Total direct materials cost variance Direct Labor Cost Variance Rate variance: 34 35 36 37 38 39 40 41 42 43 Actual rate per hour Standard rate per hour Variance Actual hours Direct labor rate variance Time variance: Actual direct labor hours Standard direct labor hours Variance Standard rate per hour 45 46 47 48 49 50 . Direct labor time variance Total direct labor cost variance Factory Overhead Cost Variance c. Variable factory overhead controllable variance: Actual variable FO cost incurred Budgeted variable FO cost for 12,000 hrs Variance Fixed factory overhead volume variance: Hours at normal capacity Standard hours for amount produced Productive capacity not used Standard fxed FO cost rate Varianco Total factory overhead cost variance Alternative Computation of Overhead Varlances: Factory Overhead Applied costs Actual costs Balance Actual Factory Overhead Budgeted Factory Overhead for Amount Produced Applied Factory Overhead Variable cost Fixed cost Total Controlable Variance Volume Variance Total Factory Overhead Cost Variance OBJ.3,4 PR 23-3A analysis Direct materials, direct labor, and factory overhead co Mackinaw Inc. processes a base chemical into plastic. Standard costs direct materials, direct labor, and factory overhead incurred for the units of product were as follows: tic. Standard costs and actual cos Actual Costs 118,500 lb. at $3.25 11,700 hrs.at $25.00 Standard Costs 120,000 lb. at $3.20 12,000 hrs. at $24.40 Rates per direct labor hr. based on 100% of normal capacity of 15,000 direct labor hrs.: Direct materials Direct labor Factory overhead Variable cost, $8.00 Fixed cost, $10.00 $91,200 variable cost $150,000 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 on- trollable variance, fixed factory overhead volume variance, and total factory overhead cost variance