eBook 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 Direct materials Direct labor Factory overhead 185,000 lbs. at $4.80 183,200 lbs. at $4.70 18,500 hrs. at $16.60 Rates per direct labor hr, 18,930 hrs. at $17.00 based on 100% of normal capacity of 19,310 direct labor hrs. Variable cost, $4.30 $78,750 variable cost Fixed cost, $6.80 $131,308 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 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