Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis 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 7,600 units of product were as follows: Standard Costs Actual Costs Direct materials 9,900 lb. at $5.20 9,800 lb. at $5.10 Direct labor 1,900 hrs. at $17.80 1,940 hrs. at $18.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,980 direct labor hrs.: Variable cost, $4.80 $9,030 variable cost Fixed cost, $7.60 $15,048 fixed cost Each unit requires 0.25 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 980 Favorable Direct materials quantity variance 520 x Favorable Total direct materials cost variance 1,500 x Favorable 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 -388 X Unfavorable X Direct labor time variance -712 x Unfavorable X Total direct labor cost variance -1,100 x Unfavorable x C. Determine variable factory overhead controllable variance, the 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 -90 Favorable Fixed factory overhead volume variance 608 Unfavorable X Total factory overhead cost variance $ 518 Unfavorable X