Question
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
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: Standard Costs Actual Costs Direct materials 229,400 lbs. at $5.00 227,100 lbs. at $4.90 Direct labor 18,500 hrs. at $16.50 18,930 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.30 $78,750 variable cost Fixed cost, $6.80 $131,308 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 Favorable Direct Materials Quantity Variance $fill in the blank 3 Favorable Total Direct Materials Cost Variance $fill in the blank 5 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 $fill in the blank 7 Unfavorable Direct Labor Time Variance $fill in the blank 9 Unfavorable Total Direct Labor Cost Variance $fill in the blank 11 Unfavorable c. Determine the variable 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 $fill in the blank 13 Favorable Fixed factory overhead volume variance $fill in the blank 15 Unfavorable Total factory overhead cost variance $fill in the blank 17 Unfavorable
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis \begin{tabular}{lll} & \multicolumn{1}{c}{ Standard Costs } & Actual Costs \\ \hline Direct materials & 229,400 lbs. at $5.00 & 227,100 lbs. at $4.90 \\ Direct labor & 18,500 hrs. at $16.50 & 18,930 hrs. at $16.90 \\ Factory overhead & Rates per direct labor hr., & \\ & based on 100% of normal & \\ & capacity of 19,310 direct & \\ & labor hrs.: \\ & Variable cost, $4.30 & $78,750 variable cost \\ & Fixed cost, $6.80 & $131,308 fixed cost \end{tabular} Each unit requires 0.25 hour of direct labor. RequiredStep by Step Solution
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