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 196,000 lbs. at $5.80 194,000 lbs. at 55.60 17,900 hrs. at $17.30 Direct labor 17,500 hrs. at $16.90 Factory overhead Rates per direct labor hra, based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $3.30 $57,170 variable cost $94,952 fixed cost Fixed cost, $5.20 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 $ -38,800 Favorable Direct Materials Quantity Variance s -11,600 Favorable Total Direct Materials Cost Variance S-50,400 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 6,760 Unfavorable Total Direct Labor Cost Variance 13,920 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. S Variable factory overhead controllable variance Fixed factory overhead volume variance S Total factory overhead cost variance 5