Santiago 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

Each unit requires $0\mathrm{.}25$ hour of direct labor.

Required:

a$.$ Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b$.$ Determine the direct labor rate variance, direct labor time 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.

Direct Labor Rate Variance

Direct Labor Time Variance

Total Direct Labor Cost Variance

c$.$ Determine the variable factory overhead controllable variance, fixed factory overhead volume 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

Fixed factory overhead volume variance

Total factory overhead cost variance

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