Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw 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 40,000units of product were as follows:Standard CostsActual CostsDirect materials120,000 Ibs. at $3.20 per Ib.118,500 Ibs. at $3.25 per Ib.Direct labor12,000 hrs. at $24.40 per hr.11,700 hrs. at $25.00 per hr.Factory overhead Rates per direct labor hr.,based on 100% of normalcapacity of 15,000 directlabor hrs.:Variable cost, $8.00$91,200 variable costFixed cost, $10.00$150,000 fixed costEach unit requires 0.3 hour of direct labor.Required:a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using aminus sign and an unfavorable variance as a positive number.Direct Material Price VarianceDirect Materials Quantity VarianceTotal Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and anunfavorable variance as a positive number.Direct Labor Rate VarianceDirect Labor Time VarianceTotal Direct Labor Cost Variancec. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as anegative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable variance%24Fixed factory overhead volume varianceTotal factory overhead cost variance$

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Description: Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw 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

Variance is the difference between a budgeted, planned, or standard cost and the actual amount…

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lackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs fo nits of product were as follows: Standard Costs Actual Costs Direct materials 120,000 Ibs. at $3.20 per Ib. 118,500 Ibs. at $3.25 per Ib. Direct labor 12,000 hrs. at $24.40 per hr. 11,700 hrs. at $25.00 per hr. actory 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 ach unit requires 0.3 hour of direct labor. equired:

lackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs fo nits of product were as follows: Standard Costs Actual Costs Direct materials 120,000 Ibs. at $3.20 per Ib. 118,500 Ibs. at $3.25 per Ib. Direct labor 12,000 hrs. at $24.40 per hr. 11,700 hrs. at $25.00 per hr. actory 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 ach unit requires 0.3 hour of direct labor. equired:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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