Ch. 8 Homework 5 0.85 points eBook Print References Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4 per pound) $120.00 70.00 Saved Direct labor (5 hours @ $14 per hour) Variable overhead (5 hours @ $8 per hour) Fixed overhead (5 hours @ $10 per hour) Standard cost per unit 40.00 50.00 $ 280.00 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 60,000 units per quarter. The following additional information is available Production (in units) Standard direct labor hours (S OLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead 70% 42,000 units 210,000 hours. $ 2,400,000 $ 1,680,000 Operating Levels 60% 48,000 units 240,000 hours. $ 2,400,000 $ 1,920,000 90% 54,000 units 270,000 hours. $ 2,400,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1,620,000 pounds @ $4 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,615,000 pounds @ $4.10 per pound) Direct labor (265,000 hours @ $13.75 per hour) Fixed overhead Variable overhead Actual cost $ 6,480,000 3,780,000 4,860,000 $ 15,120,000 $ 6,621,500 3,643,750 2,350,000 2,200,000 $14,815,250 Required: 1. Compute the direct materials variance, including its price and quantity variances. 2. Compute the direct labor variance, including its rate and efficiency variances 3. Compute the overhead controllable and volume variances. Complete this question by entering your answers in the tabs below.