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 of74,000 units of product were as follows:Direct materialsDirect labor207,200 lbs. at $5.60 per lb.18,500 hrs. at $18.00 per hr.Rates per direct labor hr., based on 100% of normalcapacity of 19,310 direct labor hrs.:Variable cost, $3.40Fixed cost, $5.40Each unit requires 0.25 hour of direct labor.Factory overheadRequired:Direct Materials Price VarianceDirect Materials Quantity VarianceTotal Direct Materials Cost Variancea. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative numberusing a minus sign and an unfavorable variance as a positive number.Standard CostsDirect Labor Rate VarianceDirect Labor Time VarianceTotal Direct Labor Cost VarianceFavorable$Favorableb. 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 minussign and an unfavorable variance as a positive number.$FavorableUnfavorableUnfavorableUnfavorable205,100 lbs. at $5.50 per lb.18,930 hrs. at $18.40 per hr.Actual Costs$62,270 variable cost$104,274 fixed costc. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorablevariance as a negative number using a minus sign and an unfavorable variance as a positive number.Variable factory overhead controllable variance$•✓Fixed factory overhead volume varianceTotal factory overhead cost varianceFavorableUnfavorableUnfavorable✓

Name: Direct Materials, Direct Labor, and Factory Overhead Cost Variance An
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 of