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: Standard Costs Actual Costs Direct materials Direct labor 210,000 lbs. at $5.80 per lb. 207,900 lbs. at $5.60 per lb. 17,500 hrs. at $16.90 per hr. 17,900 hrs. at $17.10 per hr. Rates per direct labor hr., based on 100% of normal Factory overhead $67,570 variable cost $113,212 fixed cost capacity of 18,260 direct labor hrs.: Variable cost, $3.90 Fixed cost, $6.20 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 Direct Materials Quantity Variance Favorable Favorable Favorable Total Direct Materials Cost Variance 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 Direct Labor Time Variance. Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Favorable Favorable Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favoral minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factor variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Favorable Unfavorable 5063 X Unfavorable