PR 8-3A Direct materials, direct labor, and factory overhead cost variance analysis Obj. 3, 4Mackinaw 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: 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. \begin{tabular}{|l|l|} \hline 50 & C. \\ 51 & \\ 52 \\ 53 & \\ 54 & \\ 55 & \\ 56 & \\ 57 \\ 58 \\ 59 \\ 60 \\ 61 \\ 62 \\ 63 \\ 64 \\ 65 \\ 66 \\ 67 & \\ 68 & \\ 69 \end{tabular} Factory Overhead Cost Variance Variable factory overhead controilable variance: Actual variable FO cost incurred Budgeted variable FO cost for 12,000 hrs. Variance Fixed factory overhead volume variance: Hours at normal capacity Standard hours for amount produced Productive capacity not used Standard fixed FO cost rate Variance Total factory overhead cost variance Aternative Computation of Overhead Varlances: Factory Overhead Actual costs Balance Actual Factory Overtead Budgeted Factory Overhead for Amount Produced Variable cost Fxed cost Total F Controllable Variance Applied Factory Overhead Volume Variance Total Factory Overhead Cost Variance