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 70,000 units of product were as follows Standard Costs Actual Costs Direct materials Direct labor Factory overhead Rates per direct labor hr 221,800 lbs. at $5.70 17,500 hrs. at $17.7O 17,900 hrs. at $18.10 based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $3.80 $65,840 variable cost Fixed cost, $6.00 $109,560 fixed cost Each unit requires 0.25 hour of direct labor