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 210,600 lbs. at $4.60 19,50 hrs. at $18.50 Rates per direct labor hr., based on 100% of normal Actual Costs 208,500 lbs. at $4.40 19,950 hrs. at $18.90 capacity of 20,350 direct labor hrs. Variable cost, $4.10 Fixed cost, $6.50 $79,150 variable cost $132,275 fixed cost 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 Total Direct Materials Cost Variance I 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.