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

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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 manufact
of 7,200 units of product were as follows:
Direct materials
Standard Costs
9,400 lb. at $5.80
1,800 hrs. at $16.50
Direct labor
Factory overhead
Rates per direct labor hr.,
based on 100% of normal
Actual Costs
9,300 lb. at $5.60
1,840 hrs. at $16.90
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 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
X Favorable
X Favorable
X Favorable
Total 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 an unfavorable variance as a positive number.
Direct labor rate variance
X Unfavorable
✓
Transcribed Image Text: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 manufact of 7,200 units of product were as follows: Direct materials Standard Costs 9,400 lb. at $5.80 1,800 hrs. at $16.50 Direct labor Factory overhead Rates per direct labor hr., based on 100% of normal Actual Costs 9,300 lb. at $5.60 1,840 hrs. at $16.90 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 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 X Favorable X Favorable X Favorable Total 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 an unfavorable variance as a positive number. Direct labor rate variance X Unfavorable ✓
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