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 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 varu Enter a f 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 Unfavorable Unfavorable Unfavorable Favorable Unfavorable Unfavorable ariance as a

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Mackinaw Int. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as
follows:
Standard Costs
214,600 lbs. at $5.00
18,500 hrs, at $18.20
Rates per direct labor hr
based on 100% of normal
capacity of 19,310 direct
labor hrs.
Variable cost, $3.90
Fixed cost, 16.20
Each unit requires 0.25 hour of direct labor.
Required:
Direct materials
Direct labor
Factory overhead
Actual Costs
212,500 lbs. at $5.90
18,930 hrs. at $18.40
$71,430 variable cost
$119,722 fixed cost
a. Determine the direct materials price variance, direct materials
unfavorable variance as a positive number.
Direct Material Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
terials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an
Favorable
Favorable
Favorable
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
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable
Unfavorable
✓
Transcribed Image Text:Mackinaw Int. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs 214,600 lbs. at $5.00 18,500 hrs, at $18.20 Rates per direct labor hr based on 100% of normal capacity of 19,310 direct labor hrs. Variable cost, $3.90 Fixed cost, 16.20 Each unit requires 0.25 hour of direct labor. Required: Direct materials Direct labor Factory overhead Actual Costs 212,500 lbs. at $5.90 18,930 hrs. at $18.40 $71,430 variable cost $119,722 fixed cost a. Determine the direct materials price variance, direct materials unfavorable variance as a positive number. Direct Material Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance terials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an Favorable Favorable Favorable 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 Unfavorable Unfavorable Unfavorable Favorable Unfavorable Unfavorable ✓
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