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Direct materials, direct labor, and factory overhead cost variance analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct

Direct materials, direct labor, and factory overhead cost variance analysis
Santiago 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 70,000 units of product were as follows:
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
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
$
$
Favorable
Favorable
Favorable **vv
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
Direct Labor Time Variance
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
Fixed factory overhead volume variance
Total factory overhead cost variance
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