eBook Question Content Area 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 6,400 units of product were as follows: Standard Costs Actual Costs Direct materials 8,300 lb. at $5.30 8,200 lb. at $5.20 Direct labor 1,600 hrs. at $18.70 1,640 hrs. at $19.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,670 direct labor hrs.: Variable cost, $3.60 $5,700 variable cost Fixed cost, $5.70 $9,519 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 $fill in the blank 1 Favorable Direct materials quantity variance fill in the blank 3 Favorable Total direct materials cost variance $fill in the blank 5 Favorable 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 $fill in the blank 7 Unfavorable Direct labor time variance fill in the blank 9 Unfavorable Total direct labor cost variance $fill in the blank 11 Unfavorable 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 $fill in the blank 13 Favorable Fixed factory overhead volume variance fill in the blank 15 Unfavorable Total factory overhead cost variance $fill in the blank 17 Unfavorable

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis follows: Required: unfavorable variance as a positive number. variance as a positive number. using a minus sign and an unfavorable variance as a positive number. Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit)