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 74,000 units of product were as follows: Direct materials Direct labor Factory overhead Standard Costs 207,200 lbs. at $4.80 18,500 hrs. at $16.40 Rates per direct labor hr, based on 100% of normal Actual Costs 205,100 lbs. at $4.60 18,930 hrs. at $16.60 capacity of 19,310 direct labor hrs. Variable cost, $4.60 Fixed cost, $7.30 $84,250 variable cost $140,963 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 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 Check My Work Unfavorable Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading