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Required information [The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials

Required information

[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product.

Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00
Direct labor (6 hrs. @ $15 per hr.) 90.00
Factory overheadvariable (6 hrs. @ $7 per hr.) 42.00
Factory overheadfixed (6 hrs. @ $11 per hr.) 66.00
Total standard cost $ 351.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 56,000 units per quarter. The following flexible budget information is available.

Operating Levels
70% 80% 90%
Production in units 39,200 44,800 50,400
Standard direct labor hours 235,200 268,800 302,400
Budgeted overhead
Fixed factory overhead $ 2,956,800 $ 2,956,800 $ 2,956,800
Variable factory overhead $ 1,646,400 $ 1,881,600 $ 2,116,800

During the current quarter, the company operated at 90% of capacity and produced 50,400 units of product; actual direct labor totaled 299,400 hours. Units produced were assigned the following standard costs.

Direct materials (1,512,000 Ibs. @ $5.10 per Ib.) $ 7,711,200
Direct labor (302,400 hrs. @ $15 per hr.) 4,536,000
Factory overhead (302,400 hrs. @ $18 per hr.) 5,443,200
Total standard cost $ 17,690,400

Actual costs incurred during the current quarter follow.

Direct materials (1,499,000 Ibs. @ $6.30 per lb.) $ 9,443,700
Direct labor (299,400 hrs. @ $12.50 per hr.) 3,742,500
Fixed factory overhead costs 2,604,700
Variable factory overhead costs 2,438,500
Total actual costs $ 18,229,400

(a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate

Actual Variable OH Cost -1 Flexible Budget -1 Standard Cost (VOH applied)
0
2
-1
$0
0

(b) Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AFR = Actual Fixed Rate SFR = Standard Fixed Rate

Actual Fixed OH Cost -1 Budgeted Overhead -1 Standard Cost (FOH applied)
0
2
-1
$0
0

(c) Compute the total overhead controllable variance.

Overhead Controllable Variance
Total overhead controllable variance

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