Required:a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance asa 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, direct labor time variance, 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. Entera favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable varianceFixed factory overhead volume varianceTotal factory overhead cost varianceDraviou 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 fcthe manufacture of 78,000 units of product were as follows:Standard CostsDirect materialsDirect laborFactory overhead234,000 lbs. at $5.4019,500 hrs. at $17.80Rates per direct labor hr.,based on 100% of normalcapacity of 20,350 directlabor hrs.:Variable cost, $4.60Fixed cost, $7.30Actual Costs231,700 lbs. at $5.3019,950 hrs. at $18.10$88,800 variable cost$148,555 fixed cost

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Description: Required:a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance asa negative number using a minus sign and an unfavorable variance as a positive numb

Variance is the difference between the standard cost and the actual cost of labor, materials, and…

Business

Accounting

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 incu the manufacture of 78,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 234,000 lbs. at $5.40 19,500 hrs. at $17.80 Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.60 Fixed cost, $7.30 Actual Costs 231,700 lbs. at $5.30 19,950 hrs. at $18.10 $88,800 variable cost $148,555 fixed cost

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 incu the manufacture of 78,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 234,000 lbs. at $5.40 19,500 hrs. at $17.80 Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.60 Fixed cost, $7.30 Actual Costs 231,700 lbs. at $5.30 19,950 hrs. at $18.10 $88,800 variable cost $148,555 fixed cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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