Salgan Inc., processes a base chemical into plastic.Standard costsand actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,400 units of product were as follows:

	Standard Costs	Actual Costs
Direct materials	8,300 lbs. at $5.3	8,200 lbs. at $5.1
Direct labor	1,600 hrs. at $16.6	1,640 hrs. at $17
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 1,670 direct
	labor hrs.:
		Variable cost, $3.6	$5,700 variable cost
		Fixed cost, $5.7	$9,519 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materialsprice variance, direct materialsquantity variance, and total direct materialscost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price variance	$	Favorable
Quantity variance	$	Favorable
Total direct materials cost variance	$	Favorable

b. Determine the direct laborrate variance, direct labortime 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.

Rate variance	$	Unfavorable
Time variance	$	Unfavorable
Total direct labor cost variance	$	Unfavorable

c. Determine variable factory overheadcontrollable variance, the fixed factory overheadvolume 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	$	Favorable
Fixed factory overhead volume variance	$	Unfavorable
Total factory overhead cost variance	$	Unfavorable