Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Eastern Polymers, 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 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 9,500 lbs. at $5.00 9,400 lbs. at $4.90 Direct labor 1,700 hrs. at $16.50 1,740 hrs. at $17.00 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,770 direct labor hrs.: Variable cost, $3.50 $5,890 variable cost Fixed cost, $5.50 $9,710 fixed cost Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the price variance, quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers. Price variance: $ Quantity variance: $ Total direct materials cost variance: $
b. Determine the rate variance, time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers. Rate variance: $ Time variance: $ Total direct labor cost variance: $
c. Determine variable factory overhead Controllable Variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Use the minus sign to enter favorable variances as negative numbers.