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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 74,000 units of product were as follows: Direct materials Direct labor 251,600 lbs. at $5.60 per lb. 18,500 hrs. at $16.80 per hr. Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.50 Fixed cost, $5.50 Each unit requires 0.25 hour of direct labor. Required: Factory overhead Standard Costs Direct Materials Price Variance 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. $ Favorable 249,100 lbs. at $5.50 per lb. 18,930 hrs. at $17.10 per hr. Direct Materials Quantity Variance Total Direct Materials Cost Variance I 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 $64,100 variable cost $106,205 fixed cost Favorable Unfavorable Actual Costs Favorable Unfavorable Unfavorable

Direct Materials, Direct Lobor, ond Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct lobor, and foctory overhead incurred for the manufacture of 74,000 units of product were as follows: Required: a. Determine the direct materials price variance, direct materials quantity variance, and tokal direct materials cost variance. Enter a favorable variance as a negative number using a manus sign and an unfovorable variance as a postive number. b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a fovorable vanance as a negative number using o minus sign and an unfavorable variance as a positive number 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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