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 207,200 lbs at $4 90 205,100 lbs at $4 80 Direct labor 18,500 hrs at $17 20 18,930 hrs at $17 50 Factory overhead Rates per direct labor hr , based on 100 of normal capacity of 19,310 direct labor hrs Variable cost, $2 90 $53,110 variable cost Fixed cost, $4 60 $88,826 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 Unfavorable Direct Materials Quantity Variance $fill in the blank 3 Favorable Unfavorable Total Direct Materials Cost Variance $fill in the blank 5 Favorable Unfavorable 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 Favorable Unfavorable Direct Labor Time Variance $fill in the blank 9 Favorable Unfavorable Total Direct Labor Cost Variance $fill in the blank 11 Favorable 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 Unfavorable Fixed factory overhead volume variance $fill in the blank 15 Favorable Unfavorable

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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

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	207,200 lbs. at $4.90		205,100 lbs. at $4.80
Direct labor	18,500 hrs. at $17.20		18,930 hrs. at $17.50
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 19,310 direct
	labor hrs.:
		Variable cost, $2.90	$53,110 variable cost
		Fixed cost, $4.60	$88,826 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/Unfavorable
Direct Materials Quantity Variance	$fill in the blank 3	Favorable/Unfavorable
Total Direct Materials Cost Variance	$fill in the blank 5	Favorable/Unfavorable

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	Favorable/Unfavorable
Direct Labor Time Variance	$fill in the blank 9	Favorable/Unfavorable
Total Direct Labor Cost Variance	$fill in the blank 11	Favorable/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/Unfavorable
Fixed factory overhead volume variance	$fill in the blank 15	Favorable/Unfavorable