PR 8-3A Direct materials, direct labor, and factory overhead cost variance analysis Obj. 3, 4 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: Direct materials Direct labor Factory overhead Standard Costs 120,000 lbs. at $3.20 per lb. 12,000 hrs. at $24.40 per hr. Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.: Variable cost, $8.00 Fixed cost, $10.00 Actual Costs EXCEL TEMPLATE 118,500 lbs. at $3.25 per lb. 11,700 hrs. at $25.00 per hr. $91,200 variable cost $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. Answer Check Figure: C. Controllable variance, $(4,800) F