What is the applied cost?

Direct materials, direct labor, and factory overhead cost varianceanalysis 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: Standard Costs Actual Costs 120,000 lb. at $3.20 12,000 hrs. at $24.40 Direct materials 118,500 lb. at $3.25 11,700 hrs. at $25.00 Direct labor Factory overhead Rates per direct labor hr., based on 100%% of normal capacity of 15,000 direct labor hrs. Variable cost, $8.00 $91,200 variable cost Fixed cost, $10.00 $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 con trollable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Alternative Lomputation or uverneaa variances: Factory Overhead Applied costs Actual costs Balance Actual Factory Budgeted Factory Overhead Applied Factory Overhead Overhead for Amount Produced Variable cost Fixed cost Total Controllable Volume Variance Variance Total Factory Overhead Cost Variance