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 7,600 units of product were as follows:   Standard Costs Actual Costs Direct materials 9,900 lb. at $5.00 9,800 lb. at $4.80 Direct labor 1,900 hrs. at $18.50 1,940 hrs. at $18.80 Factory overhead Rates per direct labor hr.,     based on 100% of normal     capacity of 1,980 direct     labor hrs.:       Variable cost, $3.00 $5,640 variable cost     Fixed cost, $4.70 $9,306 fixed cost 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 a positive number. Direct materials price variance $fill in the blank 1   Direct materials quantity variance fill in the blank 3   Total direct materials cost variance $fill in the blank 5   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 $fill in the blank 7   Direct labor time variance fill in the blank 9   Total direct labor cost variance $fill in the blank 11   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. Variable factory overhead controllable variance $fill in the blank 13   Fixed factory overhead volume variance fill in the blank 15   Total factory overhead cost variance

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 7,600 units of product were as follows:

  Standard Costs Actual Costs
Direct materials 9,900 lb. at $5.00 9,800 lb. at $4.80
Direct labor 1,900 hrs. at $18.50 1,940 hrs. at $18.80
Factory overhead Rates per direct labor hr.,  
  based on 100% of normal  
  capacity of 1,980 direct  
  labor hrs.:  
    Variable cost, $3.00 $5,640 variable cost
    Fixed cost, $4.70 $9,306 fixed cost

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 a positive number.

Direct materials price variance $fill in the blank 1  
Direct materials quantity variance fill in the blank 3  
Total direct materials cost variance $fill in the blank 5  

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 $fill in the blank 7  
Direct labor time variance fill in the blank 9  
Total direct labor cost variance $fill in the blank 11  

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.

Variable factory overhead controllable variance $fill in the blank 13  
Fixed factory overhead volume variance fill in the blank 15  
Total factory overhead cost variance
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