Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
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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: Direct materials Standard Costs 7,300 lb. at $5.70 Actual Costs 7,200 lb. at $5.60 Direct labor Factory overhead 1,400 hrs. at $17.00 Rates per direct labor hr., based on 100% of normal capacity of 1,460 direct 1,430 hrs. at $17.40 labor hrs.: Variable cost, $3.00 $4,160 variable cost Fixed cost, $4.70 $6,862 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 Junfavorable variance as a positive number. 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 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 Unfavorable Unfavorable 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: Direct materials Standard Costs 7,300 lb. at $5.70 Actual Costs 7,200 lb. at $5.60 Direct labor Factory overhead 1,400 hrs. at $17.00 Rates per direct labor hr., based on 100% of normal capacity of 1,460 direct 1,430 hrs. at $17.40 labor hrs.: Variable cost, $3.00 $4,160 variable cost Fixed cost, $4.70 $6,862 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 Junfavorable variance as a positive number. 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 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 Unfavorable Unfavorable
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