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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 4,800 units of product were as follows: Standard Costs Actual Costs 6,200 lb. at $6.00 1,200 hrs. at $17.90 Rates per direct labor hr., based on 100% of normal capacity of 1,250 direct abor hrs. Direct materials Direct labor Factory overhead 6,100 lb. at $5.80 1,230 hrs. at $18.10 Variable cost, $2.90 $3,450 variable cost Fixed cost, $4.60 $5,750 fixed cost Each unit requires 0.25 hour of direct labor
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