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 78,000 units of product were as follows Standard Costs Actual Costs Direct materials 218,400 lbs at $5 40 per lb 216,200 lbs at $5 30 per lb Direct labor 19,500 hrs at $16 60 per hr 19,950 hrs at $16 80 per hr Factory overhead Rates per direct labor hr , based on 100 of normal capacity of 20,350 direct labor hrs Factory overhead Variable cost, $3 10 $59,850 variable cost Factory overhead Fixed cost, $4 90 $99,715 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 Line Item Description Amount Variance Direct Materials Price Variance $ Favorable Unfavorable Direct Materials Quantity Variance $ Favorable Unfavorable Total Direct Materials Cost Variance $ Favorable Unfavorable 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 Line Item Description Amount Variance Direct Labor Rate Variance $ Favorable Unfavorable Direct Labor Time Variance $ Favorable Unfavorable Total Direct Labor Cost Variance $ Favorable Unfavorable c Determine the variable factory overhead controllable variance, 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 Line Item Description Amount Variance Variable factory overhead controllable variance $ Favorable Unfavorable Fixed factory overhead volume variance $ Favorable Unfavorable Total factory overhead cost variance $ Favorable Unfavorable

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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

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 78,000 units of product were as follows:

Standard Costs	Actual Costs
Direct materials	218,400 lbs. at $5.40 per lb.	216,200 lbs. at $5.30 per lb.
Direct labor	19,500 hrs. at $16.60 per hr.	19,950 hrs. at $16.80 per hr.
Factory overhead	Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.:
Factory overhead	Variable cost, $3.10	$59,850 variable cost
Factory overhead	Fixed cost, $4.90	$99,715 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.

Line Item Description	Amount	Variance
Direct Materials Price Variance	$	Favorable/Unfavorable
Direct Materials Quantity Variance	$	Favorable/Unfavorable
Total Direct Materials Cost Variance	$	Favorable/Unfavorable

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.

Line Item Description	Amount	Variance
Direct Labor Rate Variance	$	Favorable/Unfavorable
Direct Labor Time Variance	$	Favorable/Unfavorable
Total Direct Labor Cost Variance	$	Favorable/Unfavorable

c. Determine the variable factory overhead controllable variance, 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.

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