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 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $5.70 7,700 lb. at $5.50 Direct labor 1,500 hrs. at $16.10 1,530 hrs. at $16.30 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,560 direct labor hrs. Variable cost, $3.30 $4,900 variable cost Fixed cost, $5.20 $8,112 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 Favorable Direct materials quantity variance Favorable Total direct materials cost variance $ Favorable 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 306 Unfavorable Direct labor time variance 483 Unfavorable Total direct labor cost variance $ 789 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 variance Favorable Fixed factory overhead volume variance 312 Unfavorable Total factory overhead cost variance $ Unfavorable