please read question and answer empty boxes. THanks for your time. OBJ. 3,4PR 23-3A Direct materials, direct labor, and factory overhead cost varianceMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for directmaterials, direct labor, and factory overhead incurred for the manufacture of 40,000 units ofproduct were as follows:Direct MaterialsDirect LaborFactory OverheadStandard Costs120,000 lbs. @ $3.2012,000 hrs. @ $24.40Actual Costs118,500 lbs. @ $3.2511,700 hrs. @ $25.00Rates per direct labor hour, based on 100% of normal capacity of 15,000direct labor hours.Variable cost, $8.00Fixed cost, $10.00$91,200 variable cost$150,000 fixed costEach unit requires 0.3 hour of direct labor.Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.InstructionsDetermine (a) the direct materials price variance, direct materials quantity variance, and totaldirect materials cost variance; (b) the direct labor rate variance, direct labor time variance, andtotal direct labor cost variance; and. (c) the variable factory overhead controllable variance, thefixed factory overhead volume variance, and the total factory overhead cost variance. C.Fixed Factory Overhead Volume VarianceNormal Capacity at 100%Standard for Amount ProducedProductive Capacity not UsedStandard Fixed Factory Overhead Cost RateFactory Overhead Volume VarianceVariable Factory Overhead Controllable VarianceActual Variable Factory Overhead CostBudgeted Variable FOH for 12,000 hoursFactory Overhead Controllable VarianceTotal Factory Overhead Cost VarianceWrongWrongWrong

Answered: C. Fixed Factory Overhead Volume…

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please read question and answer empty boxes. THanks for your time.

OBJ. 3,4
PR 23-3A Direct materials, direct labor, and factory overhead cost variance
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:
Direct Materials
Direct Labor
Factory Overhead
Standard Costs
120,000 lbs. @ $3.20
12,000 hrs. @ $24.40
Actual Costs
118,500 lbs. @ $3.25
11,700 hrs. @ $25.00
Rates per direct labor hour, based on 100% of normal capacity of 15,000
direct labor hours.
Variable cost, $8.00
Fixed cost, $10.00
$91,200 variable cost
$150,000 fixed cost
Each unit requires 0.3 hour of direct labor.
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage.
Instructions
Determine (a) the direct materials price variance, direct materials quantity variance, and total
direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and
total direct labor cost variance; and. (c) the variable factory overhead controllable variance, the
fixed factory overhead volume variance, and the total factory overhead cost variance.

C.
Fixed Factory Overhead Volume Variance
Normal Capacity at 100%
Standard for Amount Produced
Productive Capacity not Used
Standard Fixed Factory Overhead Cost Rate
Factory Overhead Volume Variance
Variable Factory Overhead Controllable Variance
Actual Variable Factory Overhead Cost
Budgeted Variable FOH for 12,000 hours
Factory Overhead Controllable Variance
Total Factory Overhead Cost Variance
Wrong
Wrong
Wrong

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Step 1 Introduction

Control function - is the important function exercised by the management. Through control, management ensures that all the processes in the organization are performed well. Further, in order to place control over the activities, analysis of variances plays a crucial role wherein the analysis of variances helps in controlling the variances and improving the performance.

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