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 74,000 units of product were as follows:Standard CostsActual CostsDirect materials199,800 lbs. at $5.90197,800 lbs. at $5.70Direct labor18,500 hrs. at $16.5018,930 hrs. at $16.90Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $2.90$53,110 variable costFixed cost, $4.60$88,826 fixed costEach 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 VarianceDirect Materials Quantity VarianceTotal Direct Materials Cost Varianceb. 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 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 a negative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable varianceFixed factory overhead volume varianceTotal factory overhead cost variance

Name: Direct Materials, Direct Labor, and Factory Overhead Cost Variance An
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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

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actual costs for direct Standard Costs Actual Costs ect materials 199,800 lbs. at $5.90 197,800 Ibs at $5.70 ect labor 18,500 hrs. at $16 50 18,930 hrs. at $16.90 tory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs Variable cost, $2.90 $53,110 variable cost Fixed cost, $4.60 $88,826 fixed cost ch unit requires 0.25 hour of direct labor

actual costs for direct Standard Costs Actual Costs ect materials 199,800 lbs. at $5.90 197,800 Ibs at $5.70 ect labor 18,500 hrs. at $16 50 18,930 hrs. at $16.90 tory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs Variable cost, $2.90 $53,110 variable cost Fixed cost, $4.60 $88,826 fixed cost ch unit requires 0.25 hour of direct labor

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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