Question

1. 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 $4.70		5,600 lb. at $4.50
   Direct labor	1,100 hrs. at $17.00		1,130 hrs. at $17.30
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 1,150 direct
   	labor hrs.:
   		Variable cost, $2.90	$3,160 variable cost
   		Fixed cost, $4.60	$5,290 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	$

Check My Work2 more Check My Work uses remaining.

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Answer 1

Oty Standard Actual Variance Amount Price/Unit Amount Price/Unit Amount Price/Unit 4400 26790 6.09 25200 5.73 - 1590 -0.36 4400 18700 4.25 19549 4.44 849 0.19 Direct Materials Direct Labor Factory Overhead Variable Cost Fixed Cost 4400 4400 3190 5060 8250 0.73 1.15 3160 5290 8450 0.72 1.20 -30 230 200 -0.01 0.05 Direct materials price variance Direct materials quantity variance Total direct materials cost variance $ (0.36) -100 lb $ (1,590.00) Direct labor rate variance Direct labor time variance Total direct labor cost variance $ 0.19 30 Hrs $ 849.00 (0.01) Variable factory overhead controllable variance $ Fixed factory overhead volume variance Total factory overhead cost variance $ 200.00

	Qty	Standard Unit	Price/Unit	Std Amount	Actual Unit	Price/Unit	Act Amount	Variance
Direct Materials	4400	5700	4.7	26790	5600	4.5	25200	-1590
Direct Labor	4400	1100	17	18700	1130	17.3	19549	849
Factory Overhead
Variable Cost	4400	1100	2.9	3190	1130	2.80	3160	-30
Fixed Cost	4400	1100	4.6	5060	1130	4.68	5290	230