>Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisSantiago 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 CostsDirect materialsDirect labor214,600 lbs. at $5.00 per lb.18,500 hrs. at $18.70 per hr.Rates per direct labor hr., based on 100% of normalcapacity of 19,310 direct labor hrs.Variable cost, $4.10Fixed cost, $6.50Each 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 VarianceFavorableDirect Materials Quantity VarianceFavorableTotal Direct Materials Cost VarianceFavorableb. 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 VarianceUnfavorableDirect Labor Time VarianceUnfavorableUnfavorableFactory overheadActual Costs212,500 lbs. at $4.80 per lb.18,930 hrs. at $18.90 per hr.Fixed factory overhead volume varianceTotal factory overhead cost variance$75,090 variable cost$125,515 fixed cost✓Total 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 variance as apositive number.Variable factory overhead controllable varianceFavorableUnfavorableUnfavorable✓✓✓

Name: >Direct Materials, Direct Labor, and Factory Overhead Cost Variance A
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: >Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisSantiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture o