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 40,000 units of product were as follows Standard Costs Actual Costs Direct materials Direct labor Factory overhead 120,000 lbs. at $3.20 per lb. 12,000 hrs. at $24.40 per hr. Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.: 118,500 lbs. at $3.25 per lb 11,700 hrs. at $25.00 per hr Variable cost, $8.00 $91,200 variable cost Fixed cost, $10.00 $150,000 fixed cost Each unit requires 0.3 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 Quantity variance Total direct materials cost variance 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 Time variance Total direct labor cost 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 Fixed factory overhead volume variance Total factory overhead cost variance Unfavorable Favorable Unfavorable Unfavorable Favorable Favorable factory overhead controllable variance Favorable XUnfavorable X Unfavorable V