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 40,000 units of product were as follows:

	Standard Costs	Actual Costs
Direct materials	120,000 lbs. at $3.20 per lb.	118,500 lbs. at $3.25 per lb.
Direct labor	12,000 hrs. at $24.40 per hr.	11,700 hrs. at $25.00 per hr.
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 15,000 direct
	labor hrs.:
	Variable cost, $8.00	$91,200 variable cost
	Fixed cost, $10.00	$150,000 fixed cost

Each unit requires 0.3 hour of direct labor.

INSTRUCTIONS

Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.