Homework Help is Here – Start Your Trial Now!
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 incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 222,000 lbs. at $6.00 18,500 hrs. at $17.20 Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.70 Fixed cost, $7.40 Each unit requires 0.25 hour of direct labor. Required: Direct Labor Time Variance 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 Favorable Favorable -✓ Favorable ✓ Total Direct Materials Cost Variance 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 sig and an unfavorable variance as a positive number. Direct Labor Rate Variance Actual Costs 219,800 lbs. at $5.90 18,930 hrs. at $17.50 Variable factory overhead controllable variance $86,080 variable cost $142,894 fixed cost Fixed factory overhead volume variance Unfavorable Unfavorable Unfavorable ✓ ✓ - ✓ 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 a negative number using a minus sign and an unfavorable variance as a positive number. Favorable Unfavorable Unfavorable ✓ ✓ ✓

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 incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 222,000 lbs. at $6.00 18,500 hrs. at $17.20 Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.70 Fixed cost, $7.40 Each unit requires 0.25 hour of direct labor. Required: Direct Labor Time Variance 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 Favorable Favorable -✓ Favorable ✓ Total Direct Materials Cost Variance 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 sig and an unfavorable variance as a positive number. Direct Labor Rate Variance Actual Costs 219,800 lbs. at $5.90 18,930 hrs. at $17.50 Variable factory overhead controllable variance $86,080 variable cost $142,894 fixed cost Fixed factory overhead volume variance Unfavorable Unfavorable Unfavorable ✓ ✓ - ✓ 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 a negative number using a minus sign and an unfavorable variance as a positive number. Favorable Unfavorable Unfavorable ✓ ✓ ✓

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Solve only b and c part and do not give answer in image 

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 incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 222,000 lbs. at $6.00 18,500 hrs. at $17.20 Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Required: Variable cost, $4.70 Fixed cost, $7.40 Each unit requires 0.25 hour of direct labor. 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 Direct Labor Rate Variance Direct Labor Time Variance Actual Costs 219,800 lbs. at $5.90 18,930 hrs. at $17.50 Total Direct Labor Cost Variance $86,080 variable cost $142,894 fixed cost 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. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance $ Favorable Favorable Favorable $ $ Unfavorable Unfavorable Unfavorable 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. Favorable ✓ Unfavorable ✓ Unfavorable ✓ ✓ ✓ ✓ ✓
Transcribed Image Text: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 incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 222,000 lbs. at $6.00 18,500 hrs. at $17.20 Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Required: Variable cost, $4.70 Fixed cost, $7.40 Each unit requires 0.25 hour of direct labor. 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 Direct Labor Rate Variance Direct Labor Time Variance Actual Costs 219,800 lbs. at $5.90 18,930 hrs. at $17.50 Total Direct Labor Cost Variance $86,080 variable cost $142,894 fixed cost 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. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance $ Favorable Favorable Favorable $ $ Unfavorable Unfavorable Unfavorable 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. Favorable ✓ Unfavorable ✓ Unfavorable ✓ ✓ ✓ ✓ ✓
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS