Direct Materials

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 74,000 units of product were as follows: Standard Costs Actual Costs 227,100 lbs. at $5.70 Direct materials Direct labor Factory overhead 18,930 hrs. at $17.50 229,400 lbs. at $5.90 18,500 hrs. at $17.20 Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.30 $60,440 variable cost $100,412 fixed cost Fixed cost, $5.20 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 Favorable Direct Materials Quantity Variance Favorable Favorable Total Direct Materials Cost Variance h. Determine the direct laborate variance, direct lahor time variance and total direct labor cost variance Enter a favorable variance as a negative number 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 Unfavorable Direct Labor Time Variance Unfavorable Unfavorable 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 Favorable Total Direct Labor Cost Variance Fixed factory overhead volume variance Unfavorable Total factory overhead cost variance Unfavorable