Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred forthe manufacture of 70,000 units of product were as follows:Standard CostsActual CostsDirect materials182,000 lbs. at $5.40180,200 lbs. at $5.30Direct labor17,500 hrs. at $16.4017,900 hrs. at $16.60Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 18,260 directlabor hrs.:Variable cost, $2.90$50,240 variable costFixed cost, $4.60$83,996 fixed costEach unit requires 0.25 hour of direct labor.Required:a. Determine the direct materials price varlance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable varianceas a negative number using a minus sign and an unfavorable variance as a positive number.Direct Materials Price VarianceDirect Materials Quantity VarianceTotal Direct Materials Cost Variance%24%24%24 eBookPrint ItemFixed cost, $4.60$83,996 fixed costEach 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 varianceas a negative number using a minus sign and an unfavorable variance as a positive number.Direct Materials Price VarianceDirect Materials Quantity VarianceTotal Direct Materials Cost Varianceb. Determine the direct labor rate variance, đirect labor time varlance, and total direct labor cost variance. Enter a favorable variance as a negativenumber using a minus sign and an unfavorable variance as a positive number.Direct Labor Rate VarianceDirect Labor Time VarianceTotal Direct Labor Cost VarianceC. 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 varlance as a positlve number.Variable factory overhead controllable varianceFixed factory overhead volume varianceTotal factory overhead cost variance%24%24%24%24

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Description: Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred forthe manufacture of

Under variance analysis, the direct material price variance is defined as the difference among the…

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ackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overh e manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs irect materials 182,000 lbs. at $5.40 180,200 lbs. at $5.30 irect labor 17,500 hrs. at $16.40 17,900 hrs. at $16.60 actory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $2.90 $50,240 variable cost Fixed cost, $4.60 $83,996 fixed cost ach unit reguires 0.25 bour of direct labor

ackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overh e manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs irect materials 182,000 lbs. at $5.40 180,200 lbs. at $5.30 irect labor 17,500 hrs. at $16.40 17,900 hrs. at $16.60 actory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $2.90 $50,240 variable cost Fixed cost, $4.60 $83,996 fixed cost ach unit reguires 0.25 bour of direct labor

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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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 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 224,000 lbs. at $5.50 221,800 lbs. at $5.40 Direct labor 17,500 hrs. at $16.60 17,900 hrs. at $17.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: Variable cost, $2.90 $50,240 variable cost Fixed cost, $4.60 $83,996 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…
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