Direct Materials, Direct Labor, and Factory Overhead Cost Varlance 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 120,000 ibs. at $3.20 per Ib. 118,500 lbs. at $3.25 per lb. Direct labor 12,000 hrs. at $24.40 per hr. 11,700 hrs. at $25.00 per hr Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct abor hrs.: 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. vs. r you Direct Material Price Variance Unfavorable V Direct Materials Quantity Variance Favorable secret Check My Work PreviousNext r you rience Email Instructor Save and Exit Submit Assignment for Grading