Santiago inc. processes a base chemicalinto plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufac of $70,000$ units of product were as follows:

Standard Costs

Direct materials $,224,000lbs,$ at $$5\mathrm{.}30$ per $lb.$

Direct labor $,17,500hrs.$ at $$16\mathrm{.}20$ per hr$.$

Rates per direct labor hr$.,$ based on $100\%$ of normal

Factory overhead

Actual Costs

$221,800$ lbs$.$ at $$5\mathrm{.}20$ per lb$.$

$17,900hrs.$ at $$16\mathrm{.}50$ per hr$.$

$$81,430$ variable cost

$$135,124$ fixed cost

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.

Direct Materials Price Variance

Direct Materials Quantity Variance

Total Direct Materials Cost Variance

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

Previous