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 70,000 units of product were as follows: Actual Costs Direct materials Direct labor Factory overhead Standard Costs 231,000 lbs. at $5.60 17,500 hrs. at $18.20 Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct 228,700 lbs. at $5.40 17,900 hrs. at $18.50 labor hrs. Variable cost, $4.00 Fixed cost, $6.30 Each unit requires 0.25 hour of direct labor. Required: $69,300 variable cost $115,038 fixed cost 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 Favorable Favorable Favorable 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. Direct Labor Rate Variance Direct Labor Time Variance Unfavorable Unfavorable