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Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the
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 78,000 units of product were as follows: Standard Costs Actual Costs Direct materials Direct labor Factory overhead 218,400 lbs. at $5.10 19,500 hrs. at $17.00 216,200 lbs. at $4.90 19,950 hrs. at $17.40 Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $2.80 $54,050 variable cost Fixed cost, $4.40 Each unit requires 0.25 hour of direct labor. $89,540 fixed cost
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