1. 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 5,600 units of product were as follows:

   	Standard Costs		Actual Costs
   Direct materials	7,300 lb. at $5.70		7,200 lb. at $5.50
   Direct labor	1,400 hrs. at $16.10		1,430 hrs. at $16.30
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 1,460 direct
   	labor hrs.:
   		Variable cost, $2.90	$4,020 variable cost
   		Fixed cost, $4.60	$6,716 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	$fill in the blank 1	FavorableUnfavorable
   Direct materials quantity variance	fill in the blank 3	FavorableUnfavorable
   Total direct materials cost variance	$fill in the blank 5	FavorableUnfavorable

   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	$fill in the blank 7	FavorableUnfavorable
   Direct labor time variance	fill in the blank 9	FavorableUnfavorable
   Total direct labor cost variance	$fill in the blank 11	FavorableUnfavorable

   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.

   Variable factory overhead controllable variance	$fill in the blank 13	FavorableUnfavorable
   Fixed factory overhead volume variance	fill in the blank 15	FavorableUnfavorable
   Total factory overhead cost variance	$fill in the blank 17	FavorableUnfavorable