Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis 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 5,600 units of product were as follows:
Standard Costs Actual Costs
Direct materials 7,300 lb. at $6.00 7,200 lb. at $5.90
Direct labor 1,400 hrs. at $17.40 1,430 hrs. at $17.70
Factory overhead Rates per direct labor hr.,
based on 100% of normal
capacity of 1,460 direct
labor hrs.:
Variable cost, $4.40 $6,100 variable cost
Fixed cost, $7.00 $10,220 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.
Price variance $ U/F
Quantity variance $ U/F
Total direct materials cost variance $ U/F
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.
Rate variance $ U/F
Time variance $ U/F
Total direct labor cost variance $ U/F
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 $ U/F
Fixed factory overhead volume variance $ U/F
Total factory overhead cost variance $ U/F
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 | 238,000 lbs. at $6.00 | 235,600 lbs. at $5.90 | |
| Direct labor | 17,500 hrs. at $16.60 | 17,900 hrs. at $16.80 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 18,260 direct | |||
| labor hrs.: | |||
| Variable cost, $4.70 | $81,430 variable cost | ||
| Fixed cost, $7.40 | $135,124 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 Material 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 | $ | Unfavorable |
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 | $ | Favorable |
| Fixed factory overhead volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 | 203,000 lbs. at $5.20 | 201,000 lbs. at $5.10 | |
| Direct labor | 17,500 hrs. at $18.50 | 17,900 hrs. at $18.70 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 18,260 direct | |||
| labor hrs.: | |||
| Variable cost, $3.90 | $67,570 variable cost | ||
| Fixed cost, $6.20 | $113,212 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 Material 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 | $ | Unfavorable |
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 | $ | Favorable |
| Fixed factory overhead volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 4,400 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 5,700 lb. at $5.40 | 5,600 lb. at $5.20 | |
| Direct labor | 1,100 hrs. at $17.60 | 1,130 hrs. at $18.00 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 1,150 direct | |||
| labor hrs.: | |||
| Variable cost, $3.10 | $3,380 variable cost | ||
| Fixed cost, $4.90 | $5,635 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.
| Price variance -1120 | $ -1120 | Favorable |
| Quantity variance -540 | $-540 | Favorable |
| Total direct materials cost variance -1660 | $-1660 | 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.
| Rate variance 452 | $452 | Unfavorable |
| Time variance 528 | $528 | Unfavorable |
| Total direct labor cost variance 980 | $980 | Unfavorable |
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 | $??? | Favorable |
| Fixed factory overhead volume variance | $??? | Unfavorable |
| Total factory overhead cost variance | $??? | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 74,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 214,600 lbs. at $5.30 | 212,500 lbs. at $5.10 | |
| Direct labor | 18,500 hrs. at $18.30 | 18,930 hrs. at $18.70 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 19,310 direct | |||
| labor hrs.: | |||
| Variable cost, $3.20 | $58,610 variable cost | ||
| Fixed cost, $5.10 | $98,481 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 Material 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 | $ | Unfavorable |
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 | $ | Favorable |
| Fixed factory overhead volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 | 182,000 lbs. at $4.80 | 180,200 lbs. at $4.60 | |
| Direct labor | 17,500 hrs. at $16.50 | 17,900 hrs. at $16.70 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 18,260 direct | |||
| labor hrs.: | |||
| Variable cost, $4.00 | $69,300 variable cost | ||
| Fixed cost, $6.30 | $115,038 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 | $ | |
| 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 | $ |
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 |
ACCT 101B - CH 23 EXAMPLE 3
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 78,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 210,600 lbs. at $5.80 | 208,500 lbs. at $5.70 | |
| Direct labor | 19,500 hrs. at $18.50 | 19,950 hrs. at $18.70 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 20,350 direct | |||
| labor hrs.: | |||
| Variable cost, $3.50 | $67,570 variable cost | ||
| Fixed cost, $5.50 | $111,925 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 | $? | Unfavorable |
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 | $? | Favorable |
| Fixed factory overhead volume variance | $? | Unfavorable |
| Total factory overhead cost variance | $? | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 74,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 229,400 lbs. at $4.90 | 227,100 lbs. at $4.80 | |
| Direct labor | 18,500 hrs. at $17.10 | 18,930 hrs. at $17.40 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 19,310 direct | |||
| labor hrs.: | |||
| Variable cost, $3.20 | $58,610 variable cost | ||
| Fixed cost, $5.10 | $98,481 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 Material 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 | $ | Unfavorable |
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 | $ | Favorable |
| Fixed factory overhead volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 78,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 202,800 lbs. at $5.60 | 200,800 lbs. at $5.40 | |
| Direct labor | 19,500 hrs. at $16.60 | 19,950 hrs. at $17.00 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 20,350 direct | |||
| labor hrs.: | |||
| Variable cost, $4.70 | $90,730 variable cost | ||
| Fixed cost, $7.40 | $150,590 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 | $fill in the blank 7 | Unfavorable |
| Direct Labor Time Variance | $fill in the blank 9 | Unfavorable |
| Total Direct Labor Cost Variance | $fill in the blank 11 | Unfavorable |
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 | $ | Favorable |
| Fixed factory overhead volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
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 4,400 units of product were as follows:
Standard Costs Actual Costs
Direct materials 5,700 lb. at $5.50 5,600 lb. at $5.30
Direct labor 1,100 hrs. at $17.40 1,130 hrs. at $17.60
Factory overhead Rates per direct labor hr.,
based on 100% of normal capacity of 1,150 direct labor hrs.:
Variable cost, $4.40 $4,790 variable cost
Fixed cost, $7.00 $8,050 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.
Price variance $______ Favorable or Unfavorable
Quantity variance $______ Favorable or Unfavorable
Total direct materials cost variance $______ Favorable or Unfavorable
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.
Rate variance $______ Favorable or Unfavorable
Time variance $______ Favorable or Unfavorable
Total direct labor cost variance $______ Favorable or Unfavorable
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 $______ Favorable or Unfavorable
Fixed factory overhead volume variance $______ Favorable or Unfavorable
Total factory overhead cost variance $______ Favorable or Unfavorable
In: Accounting