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 6,400 units of product were as follows: Standard Costs Actual Costs Direct materials 8,300 lb. at $5.80 8,200 lb. at $5.60 Direct labor 1,600 hrs. at $17.70 1,640 hrs. at $18.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,670 direct labor hrs.: Variable cost, $3.20 $5,070 variable cost Fixed cost, $5.10 $8,517 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. Price variance $ -1,640 Favorable Quantity variance $ -580 Favorable Total direct materials cost variance $ -2,220 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. Rate variance $ 480 Unfavorable Time variance $ 708 Unfavorable Total direct labor cost variance $ 1,200 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 $ -1,330 Favorable Fixed factory overhead volume variance $ 441 Unfavorable Total factory overhead cost variance $ -1,126 Unfavorable