Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead in of 7,200 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 9,400 lb. at $5.80 Actual Costs 9,300 lb. at $5.60 1,800 hrs. at $16.50 1,840 hrs. at $16.90 Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $3.50 $6,240 variable cost Fixed cost, $5.50 $10,340 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 var 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 X Favorable X Favorable 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 negativ minus sign and an unfavorable variance as a positive number. Direct labor rate variance X Unfavorable

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead in of 7,200 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 9,400 lb. at $5.80 Actual Costs 9,300 lb. at $5.60 1,800 hrs. at $16.50 1,840 hrs. at $16.90 Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $3.50 $6,240 variable cost Fixed cost, $5.50 $10,340 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 var 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 X Favorable X Favorable 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 negativ minus sign and an unfavorable variance as a positive number. Direct labor rate variance X Unfavorable

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 manufactof 7,2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 78,000 units of product were as follows: Standard Costs Actual Costs Direct materials 265,200 Ibs. at $5.10 262,500 Ibs. at $4.90 Direct labor 19,500 hrs. at $18.10 19,950 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.70 $90,730 variable cost Fixed cost, $7.40 $150,590 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance b. Determine the direct labor rate variance,…
Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Supreme using traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.
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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 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $5.90 7,700 lb. at $5.80 Direct labor 1,500 hrs. at $16.10 1,530 hrs. at $16.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,560 direct labor hrs.: Variable cost, $3.00 $4,460 variable cost Fixed cost, $4.70 $7,332 fixed cost Each unit requires 0.25 hour of direct labor.
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