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 78,000 units of product were as follows: Standard Costs Actual Costs Direct materials 210,600 lbs. at $5.40 208,500 lbs. at $5.20 Direct labor 19,500 hrs. at $16.50 19,950 hrs. at $16.70 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $3.00 $57,920 variable cost Fixed cost, $4.70 $95,645 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 Material Price Variance $ 20,850 Favorable Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance $ 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 $ Unfavorable Direct Labor Time Variance $ Unfavorable Total Direct Labor Cost Variance $ 7,980 Unfavorable 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 $ Favorable Fixed factory overhead volume variance $ Unfavorable Total factory overhead cost variance $ 4,725 Unfavorable