Direct Materials, Direct Labor, and Factory Overhead 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 70,000 units of product were as follows: Actual Costs Standard Costs Direct materials 217,000 lbs. at $5.00 per lb. 214,800 lbs. at $4.80 per lb. Direct labor 17,500 hrs. at $16.70 per hr. 17,900 hrs. at $17.10 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $4.50 Fixed cost, $7.10 $77,960 variable cost $129,646 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 $ -42,960 Favorable Direct Materials Quantity Variance $ -11,000 Favorable Total Direct Materials Cost Variance $ -53,960 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 $ 7,160 Unfavorable Direct Labor Time Variance $ 6,680 Unfavorable