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 78,000 units of product were as follows: Actual Costs Standard Costs 193,100 lbs, at $5.80 Direct materials 195,000 lbs. at $5.90 Direct labor 19,500 hrs. at $16.30 19,950 hrs. at $16.50 Rates per direct labor hr. Factory overhead based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.10 $79,150 variable cost $132,275 fixed cost Fixed cost, $6.50 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 $19,310 Favorable Direct Material Price Variance $ 11,210 X Favorable Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance -8,100 X favorable variance as negative number using a b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter minus sign and an unfavorable variance as positive number. Unfavorable 3,990 Direct Labor Rate Variance Unfavorable 7,335 Direct Labor Time Variance 11,325 Unfavorable Total Direct Labor Cost Variance 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 $198,435 x Favorable Variable factory overhead controllable variance 14,570X Unfavorable Fixed factory overhead volume variance 213,005 x Unfavorable v Total factory overhead cost variance