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 manufacture of 6,000 units of product were as follows:
Standard Costs | Actual Costs | ||
Direct materials | 7,800 lb. at $5.30 | 7,700 lb. at $5.20 | |
Direct labor | 1,500 hrs. at $17.70 | 1,530 hrs. at $18.00 | |
Factory overhead | Rates per direct labor hr., | ||
based on 100% of normal | |||
capacity of 1,560 direct | |||
labor hrs.: | |||
Variable cost, $4.10 | $6,090 variable cost | ||
Fixed cost, $6.50 | $10,140 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, 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 | $ | |
Direct labor time variance | ||
Total direct labor cost variance | $ |
c. Determine variable factory overhead controllable variance, the 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 variance | $ | |
Fixed factory overhead volume variance | ||
Total factory overhead cost variance | $ |
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
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 manufacture of 6,400 units of product were as follows: Standard Costs Actual Costs Direct materials 8,300 lb. at $5.20 8,200 lb. at $5.00 Direct labor 1,600 hrs. at $17.70 1,640 hrs. at $18.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 6,400 units of product were as follows: Standard Costs Actual Costs 8,200 lb. at $5.30 1,640 hrs. at $18.00 Direct materials 8,300 lb. at $5.40 Direct labor 1,600 hrs. at $17.70 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $4.60 6,700 lb. at $4.40 Direct labor 1,300 hrs. at $18.10 1,330 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 7,600 units of product were as follows: Standard Costs Actual Costs Direct materials 9,900 lb. at $4.90 9,800 lb. at $4.70 Direct labor 1,900 hrs. at $16.40 1,940 hrs. at $16.70 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 4,400 units of product were as follows: Standard Costs Actual Costs Direct materials 5,700 lb. at $5.10 5,600 lb. at $5.00 Direct labor 1,100 hrs. at $18.00 1,130 hrs. at $18.20 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 5,600 units of product were as follows: Standard Costs Actual Costs Direct materials 7,300 lb. at $5.30 7,200 lb. at $5.20 Direct labor 1,400 hrs. at $17.00 1,430 hrs. at $17.30 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufactu of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.80 8,700 lb. at $4.70 1,700 hrs. at $16.10 1,740 hrs. at $16.50 Direct labor Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 4,800 units of product were as follows: Actual Costs 6,100 lb. at $5.60 1,230 hrs. at $18.60 Standard Costs Direct materials 6,200 lb. at $5.80 Direct labor 1,200 hrs. at $18.20 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 6,400 units of product were as follows: Standard Costs Actual Costs 8,200 lb. at $5.70 1,640 hrs. at $16.90 Direct materials 8,300 lb. at $5.80 Direct labor 1,600 hrs. at $16.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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 manufacture of 5,600 units of product were as follows: Standard Costs Actual Costs 7,300 lb. at $6.00 7,200 lb. at $5.90 Direct materials Direct labor 1,400 hrs. at $18.50 1,430 hrs. at $18.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...