1. 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 6,000 units of product were as follows:

   	Standard Costs		Actual Costs
   Direct materials	7,800 lb. at $5.50		7,700 lb. at $5.40
   Direct labor	1,500 hrs. at $17.70		1,530 hrs. at $18.10
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 1,560 direct
   	labor hrs.:
   		Variable cost, $3.50	$5,200 variable cost
   		Fixed cost, $5.50	$8,580 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
   Direct materials quantity variance	fill in the blank 3
   Total direct materials cost variance	$fill in the blank 5

   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
   Direct labor time variance	fill in the blank 9
   Total direct labor cost variance	$fill in the blank 11

   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
   Fixed factory overhead volume variance	fill in the blank 15
   Total factory overhead cost variance	$fill in the blank 17

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