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Required information [The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product Direct
Required information [The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 per hour) Standard cost per unit 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 62,000 units per quarter. The following additional information is available. Operating Levels 80% 49,600 347, 200 Production (in units) Standard direct labor hours (7 DLH per unit) $ 165.00 98.00 42.00 84.00 $ 389.00 Budgeted overheid (flexible budget) Fixed overhead Variable overhead 70% 43,400 303,800 $ 4,166,400 $ 1,822,800 90% 55,800 390,600 $ 4,166,400 $ 4,166,400 $ 2,083,200 $ 2,343,600 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs.
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