Question

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 product were rollows Standard Costs Actual Costs Direct materials 8,300 b. at5.00 B,20D b. at $4.90 1.600 hrs, at $18.10 1.640 hrs Direct lebor $18.40 Factory overhead Rates per direct labor hr based on 10g% of normal capacity of 1,670 direct labor hrs. Variable cast, $3.10 $4,910 vanable cost: SR.183 ixed cost Fixed cost, s4.90 Each unit requires 0.25 hour pf direct labpr Required: nd total direct materials cost veriance, Enter a favarable variance n unfavorable variance as a positive number a. Determine the direct materials price variance, direct materials quantity variance, sa negative number using a minus sign and Direct materials price variance Direct materials quantity variance Total direct materials cost variance h. Determine the direct labar rete veriance direct labor time variance and tptal dirert lebor cost veriance Enter a favorable variance. a negative number using a minus sign and unfavoreble variance as e pcsitive number Direct lebor rate variance Direct labor time variance Total direct labor cost variance e positive numbe c. Detemine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance es a negetive number using e minus sign and an unfavorable variance as Variable factory overhead controllable variance Fixed fectory overhead volume variance Total factory overhead cost varlanoe

Answer 1

Phut marciak Price vauiance $820 favouatle = (sp-Ap)x Aa (5.00-4.90)x & 100820 Dhrcut mateiads auantily vasiana 500 Favaurabe (2300-8200)x5 (sQ-Aa)sp Toral d'rur materlals cosr volian ce 1320 favourable f492 unfavourale (SL-AP)XAH =(12-10-18-u x1640 = 4a2 Dirut habour rati vaiane 24 unfavouratle Cst -AH)SP - (1600-1640)x1g- (O 424 Foral drut Habour osr vauan ca 1216 unfavouratle DTur labour time variance

Aclual Yauiable tauoy ovelhaads ledgeted voiate dautoy Orcheads Vauiable fauoy oruhad Conhrollable vauiance fy910-(1600x 3-10) 50 favourable Aacd tactoy OvethradStandaad hourt fo l0o Capauty -Srandou X hours for aulial Produetion volame vauianie fad fashy avehead rete {16 70 -1600) x 4.9 243 untavourable Total faubhy Ovethead lottauiane 293 ufauocuaLle 343-50)