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I need help on figuring out the calculations which numbers to use for each table. I am more worried about how to do it, than
I need help on figuring out the calculations which numbers to use for each table. I am more worried about how to do it, than the answer. As long as the calculations are correct or I understand where you got the numbers from I am fine with that. Thank you.
Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4.80 per Ib.) $144.00 Direct labor (6 hrs. @ $14 per hr.) 84.00 Factory overheadvariable (6 hrs. @ $7 per hr.) 42.00 Factory overheadfixed (6 hrs. @ $12 per hr.) 72.00 Total standard cost $342.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 66,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% 46,200 52,800 59,400 277,200 316,800 356,400 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead $3,801,600 $3,801,600 $3,801,600 Variable factory overhead $1,940,400 $2,217,600 $2,494,800 During the current quarter, the company operated at 90% of capacity and produced 59,400 units of product; actual direct labor totaled 303,800 hours. Units produced were assigned the following standard costs. Direct materials (1,782,000 Ibs. @ $4.80 per Ib.)$ 8,553,600 Direct labor (356,400 hrs. @ $14 per hr.) 4,989,600 Factory overhead (356,400 hrs. @ $19 per hr.) 6,771,600 Total standard cost $20,314,800 Actual costs incurred during the current quarter follow. Direct materials (1,522,000 Ibs. @ $7.30 per lb.)$11,110,600 Direct labor (303,800 hrs. @ $13.10 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs 3,979,780 2,336,900 2,637,700 $20,064,980 Required: 1. Compute the direct materials cost variance, including its price and quantity variances. 2. Compute the direct labor cost variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variancesStep by Step Solution
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