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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 70,000 units of product were as follows: Standard Costs Actual Costs 203,000 lbs. at $5.10 Direct materials Direct labor Factory overhead 17,500 hrs. at $18.30 Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: 201,000 lbs, at $5.00 Direct Materials Quantity Variance Total Direct Materials Cost Variance 17,900 hrs. at $18.60 Variable cost, $79,700 $4.60 Fixed cost, $7.30 variable cost $133,298 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 $ Favorable $ Favorable $ Favorable 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 $ Unfavorable Direct Labor Time Variance. $ Unfavorable Total Direct Labor Cost Variance $ 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.. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Unfavorable $ Favorable $ Unfavorable $ Unfavorable

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 70,000 units of product were as follows: Standard Costs Actual Costs 203,000 lbs. at $5.10 Direct materials Direct labor Factory overhead 17,500 hrs. at $18.30 Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: 201,000 lbs, at $5.00 Direct Materials Quantity Variance Total Direct Materials Cost Variance 17,900 hrs. at $18.60 Variable cost, $79,700 $4.60 Fixed cost, $7.30 variable cost $133,298 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 $ Favorable $ Favorable $ Favorable 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 $ Unfavorable Direct Labor Time Variance. $ Unfavorable Total Direct Labor Cost Variance $ 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.. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Unfavorable $ Favorable $ Unfavorable $ Unfavorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials Direct labor Factory overhead 203,000 lbs. at $5.10 17,500 hrs. at $18.30 Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: 201,000 lbs. at $5.00 17,900 hrs. at $18.60 Variable cost, $4.60 Fixed cost, $7.30 $79,700 variable cost $133,298 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 $ Favorable. Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance $ Favorable 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 $ Unfavorable Direct Labor Time Variance $ Unfavorable Total Direct Labor Cost Variance $ 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. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Unfavorable $ Favorable $ Unfavorable $ Unfavorable
Transcribed Image Text: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 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials Direct labor Factory overhead 203,000 lbs. at $5.10 17,500 hrs. at $18.30 Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: 201,000 lbs. at $5.00 17,900 hrs. at $18.60 Variable cost, $4.60 Fixed cost, $7.30 $79,700 variable cost $133,298 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 $ Favorable. Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance $ Favorable 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 $ Unfavorable Direct Labor Time Variance $ Unfavorable Total Direct Labor Cost Variance $ 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. Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance Unfavorable $ Favorable $ Unfavorable $ Unfavorable
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