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 5,200 units of product were as follows: Standard Costs Actual Costs 6,700 lb. at $5.50 Direct materials Direct labor Factory overhead 6,800 lb. at $5.50 1,300 hrs. at $18.20 Rates per direct labor hr., based on 100% of normal capacity of 1,360 direct labor hrs.: 1,330 hrs. at $18.50 Variable cost, $4.10 Fixed cost, $6.50 $5,280 variable cost $8,840 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. Direct labor rate variance Direct labor time variance Total direct labor cost variance