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 40,000 units of product were as follows: Standard Costs Actual Costs Direct materials 120,000 lbs. at $3.20 per lb. 118,500 lbs. at $3.25 per lb. Direct labor 12,000 hrs. at $24.40 per hr. 11,700 hrs. at $25.00 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.: Variable cost, $8.00 $91,200 variable cost Fixed cost, $10.00 $150,000 fixed cost Each unit requires 0.3 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 Material Price Variance 5925 Unfavorable Direct Materials Quantity Variance -4800 Favorable Total Direct Materials Cost Variance 1125 Unfavorable 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 7020 Unfavorable Direct Labor Time Variance 7320 Favorable Total Direct Labor Cost Variance -300 Favorable c.Determine the variable factory overhead controllable variance, 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 ? Favorable Fixed factory overhead volume variance ? Unfavorable Total factory overhead cost variance ? Unfavorable

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 40,000 units of product...

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 40,000 units of product were as follows:

	Standard Costs	Actual Costs
Direct materials	120,000 lbs. at $3.20 per lb.	118,500 lbs. at $3.25 per lb.
Direct labor	12,000 hrs. at $24.40 per hr.	11,700 hrs. at $25.00 per hr.
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 15,000 direct
	labor hrs.:
		Variable cost, $8.00	$91,200 variable cost
		Fixed cost, $10.00	$150,000 fixed cost

Each unit requires 0.3 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 Material Price Variance	5925	Unfavorable
Direct Materials Quantity Variance	-4800	Favorable
Total Direct Materials Cost Variance	1125	Unfavorable

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	7020	Unfavorable
Direct Labor Time Variance	7320	Favorable
Total Direct Labor Cost Variance	-300	Favorable

c.Determine the variable factory overhead controllable variance, 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	?	Favorable
Fixed factory overhead volume variance	?	Unfavorable
Total factory overhead cost variance	?	Unfavorable

Jun 01, 2022

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