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can i get some help with these two questions its overhead controllable variance and the overhead volume variance Trini Company set the following standard costs
can i get some help with these two questions its overhead controllable variance and the overhead volume variance
Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.10 per pound) Direct labor (8 hours @ $15 per hour) Variable overhead (8 hours @ $6 per hour) Fixed overhead (8 hours @ $9 per hour) Standard cost per unit $ 153.00 120.00 48.00 72.00 $ 393.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 65,000 units per quarter. The following additional information is available. Operating Levels 70% 80% 45,500 52,000 364,000 416,000 90% 58,500 468 , Production (in units) Standard direct labor hours (8 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 3,744,000 $ 2,184,000 $ 3,744,000 $ 2,496,000 $ 3,744, een $ 2,808,000 During the current quarter, the company operated at 90% of capacity and produced 58,500 units; actual direct labor totaled 465,000 hours. Units produced were assigned the following standard costs. Direct materials (1,755,000 pounds @ $5.10 per pound) Direct labor (468,000 hours @ $15 per hour) Overhead (468,000 hours @ $15 per hour) Standard (budgeted) cost $ 8,950, 500 7,020,000 7,020,000 $ 22,990,500 Actual costs incurred during the current quarter follow. Direct materials (1,741,000 pounds @ $7.00 per pound) Direct labor (465,000 hours @ $11,50 per hour) Fixed overhead Variable overhead Actual cost $ 12,187,000 5,347,500 3,315,800 3,104,200 $ 23,954,500 Compute the overhead controllable variance. (Indicate the effect variance.) Controllable Variance Actual total overhead Budgeted total overhead Controllable variance Favorable Compute the overhead volume variances. (Indicate the effect o variance.) Volume variance Budgeted total overhead Standard overhead applied Volume variance Step by Step Solution
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