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 @ $5.00 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit $ 150.00 98.00 49.00 63.00 $ 360.00 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 61,000 units per quarter. The following additional Information is available. Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead 70% 42,700 298,900 Operating Levels 80% 48,800 341,600 90% $ 3,074,400 $ 3,074,400 54,900 384,300 $ 3,074,400 $ 2,092,300 $ 2,391,200 $ 2,690,100 During the current quarter, the company operated at 90% of capacity and produced 54,900 units; actual direct labor totaled 316,300 hours. Units produced were assigned the following standard costs. Direct materials (1,647,000 pounds @ $5.00 per pound) Direct labor (384,300 hours @ $14 per hour) Overhead (384,300 hours @ $16 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,364,000 pounds @ $7.80 per pound) Direct labor (316,300 hours @ $11.10 per hour) Fixed overhead Variable overhead Actual cost $ 8,235,000 5,380,200 6,148,800 $ 19,764,000 $ 10,639,200 3,510,930 2,348,400 2,742,200 $ 19,240,730 Required: (a) Compute the variable overhead spending and efficiency variances. (b) Compute the fixed overhead spending and volume variances. (c) Compute the overhead controllable variance. Required A Required B Required C Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "cost per unit" and "rate per hour" answers to 2 decimal places.) Actual Variable OH Cost Actual hours x Actual variable rate 316,300 x S 8.67 $ 2,742,200 Variable overhead spending variance Variable overhead efficiency variance Variable overhead variance $ 528,100 Flexible Budget Actual hours x Standard variable rate 316,300 x $ 7.00 $ 2,214,100 $ 476,000 S 528,100 Unfavorable S 476,000 52,100 Favorable Unfavorable Required A Required B > Standard Cost (VOH applied) Standard hours x Standard variable rate 384,300 x S 7.00 $ 2,690,100 Required A Required B Required C Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "cost per unit" and "rate per hour" answers to 2 decimal places.) Actual Fixed OH Cost Actual hours x Actual fixed rate 316,300 x $ 7.42 $ 2,348,400 Fixed overhead spending variance Fixed overhead volume variance Fixed overhead variance 000 S 0 0 Budgeted Overhead Standard Cost (FOH applied) Standard hours X Standard fixed rate < Required A Required C > x Required A Required B Required C Compute the overhead controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Overhead Controllable Variance Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance Controllable variance $ 528,100 ( Unfavorable 476,000 Favorable 726,000 Favorable $ 673,900 Favorable < Required B Required C >