Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead in of 7,200 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 9,400 lb. at $5.80 Actual Costs 9,300 lb. at $5.60 1,800 hrs. at $16.50 1,840 hrs. at $16.90 Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $3.50 $6,240 variable cost Fixed cost, $5.50 $10,340 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 var 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 X Favorable X Favorable X Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negativ minus sign and an unfavorable variance as a positive number. Direct labor rate variance X Unfavorable

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead in of 7,200 units of product were as follows: Standard Costs Direct materials Direct labor Factory overhead 9,400 lb. at $5.80 Actual Costs 9,300 lb. at $5.60 1,800 hrs. at $16.50 1,840 hrs. at $16.90 Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $3.50 $6,240 variable cost Fixed cost, $5.50 $10,340 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 var 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 X Favorable X Favorable X Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negativ minus sign and an unfavorable variance as a positive number. Direct labor rate variance X Unfavorable

Name: Direct Materials, Direct Labor, and Factory Overhead Cost Variance An
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Description: Direct Materials, Direct Labor, and Factory Overhead Cost Variance AnalysisMackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufactof 7,2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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