Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago 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 78,000 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 257,400 lbs. at $5.70 per lb. 19,500 hrs. at $18.50 per hr. Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.20 Fixed cost, $6.60 Each 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 positive number. Actual Costs 254,800 lbs. at $5.60 per lb. 19,950 hrs. at $18.70 per hr. Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance . 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 Variance Direct Labor Time Variance Total Direct Labor Cost Variance Variable factory overhead controllable variance Fixed factory overhead volume variance Fotal factory overhead cost variance $81,080 variable cost $134,310 fixed cost . 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 nfavorable variance as a positive number. $ $

FINANCIAL ACCOUNTING
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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Santiago 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 78,000 units of product were as follows:
Standard Costs
Actual Costs
254,800 lbs. at $5.60 per lb.
19,950 hrs. at $18.70 per hr.
Direct materials
Direct labor
257,400 lbs. at $5.70 per lb.
19,500 hrs. at $18.50 per hr.
Rates per direct labor hr., based on 100% of normal
capacity of 20,350 direct labor hrs.:
Variable cost, $4.20
Fixed cost, $6.60
Each unit requires 0.25 hour of direct labor.
Required:
Factory overhead
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 Variance
Direct Materials Quantity Variance
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 sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance
Direct Labor Time Variance
Total Direct Labor Cost Variance
Variable factory overhead controllable variance
Fixed factory overhead volume variance
Total factory overhead cost variance.
$81,080 variable cost
$134,310 fixed cost
c. 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 a positive number.
$
$
Transcribed Image Text:Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago 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 78,000 units of product were as follows: Standard Costs Actual Costs 254,800 lbs. at $5.60 per lb. 19,950 hrs. at $18.70 per hr. Direct materials Direct labor 257,400 lbs. at $5.70 per lb. 19,500 hrs. at $18.50 per hr. Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $4.20 Fixed cost, $6.60 Each unit requires 0.25 hour of direct labor. Required: Factory overhead 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 Variance Direct Materials Quantity Variance 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 sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance. $81,080 variable cost $134,310 fixed cost c. 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 a positive number. $ $
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