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: Direct materials Direct labor Factory overhead Standard Costs 234,000 lbs. at $4.60 19,500 hrs. at $18.00 Actual Costs 231,700 lbs. at $4.50 19,950 hrs. at $18.20 Rates per direct labor hr, based on 100% of normal capacity of 20,350 direct labor hrs. Vanable cost, $3.20 $61,780 variable cost Fixed cost, $5.10 $103,785 fixed cost Each unit requires 0.25 bour of direct labor. Required: a. Determine the direct matenals price variance, direct materials quantity vanance, 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 Total Direct Materials Cost Variance i Check My Work 3 more Check My Work uses remaining Favorable Favorable Favorable Previous Next Lost Vanance 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 Direct Labor Time Variance Total Direct Labor Cost Variance Unfavorable Unfavorable Unfavorable c. Determine the vanable 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. Variable factory overhead controllable variance Fixed factory overhead volume vanance Total factory overhead cost variance Feedback Check My Work Favorable Unfavorable Unfavorable Unfavorable vanances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The vanable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced. Check My Work 3 more Check My Work uses remaining Previous