Direct Materials, Direct Labor, andFactory Overhead Cost VarianceAnalysis
Mackinaw Inc. processes a base chemical into plastic.Standard costsand actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows:
) DaBaby Radio - Pandora X CengageNOWv2 | Online teachin X Course Hero x + X C & https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . 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 5,200 units of product were as follows: ? Standard Costs Actual Costs Direct materials 6,800 lb. at $4.70 6,700 lb. at $4.60 Direct labor 1,300 hrs. at $17.00 1,330 hrs. at $17.30 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,360 direct labor hrs.: Variable cost, $2.90 $3,730 variable cost Fixed cost, $4.60 $6,256 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. Direct materials price variance Direct materials quantity variance Total direct materials cost variance Previous Type here to search O 6:50 PM 25 91.F 8/8/2021 741n: I . [:ll) DaBabyRadiOEPandora X J a; CengageNOWvZ|Onlineteachir X [H CourseHero X I + _ G E] https://v2.cengagenow.com/ilrn/ta keAssignment/takeAsslgnmentMaln.do?invoker:SnakeAssignmentSessionLocator:&inprogress:false Fixed cost, $4.60 $6,256 xed cost Each unit requires 0.25 hour of direct labor. Required: 3. 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 7 Direct materials quantity variance 7 Total direct materials cost variance v 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 $ v Direct labor time variance V Total direct labor cost variance $ V 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 Fixed factory overhead volume variance Total factory overhead cost variance ( Previous ,0 Type here to search 615i PM Macaw a
