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.) Direct labor (6 hrs. $15 per hr.) Factory overhead-variable (6 hrs. @ $7 per hr.) Factory overhead-fixed (6 hrs. @ $11 per hr.) Total standard cost $ 153.00 90.00 42.00 66.00 $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% 900 909 39,200 44,800 50,400 235, 200 268, B00 3 02,400 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $ 2,956,800 $2,956,800 $2,956, 800 $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 s Direct labor (302, 400 hrs. @ $15 per hr.) Factory overhead (302,400 hrs. @ $10 per hr.) Total standard cost 2.711.200 4,536,000 5,443,200 $ 17,690,400 Actual costs incurred during the current quarter follow. Direct materials (1,499,000 Ibs. @ $6.30 per lb.) Direct labor (299,400 hrs. @ $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 9,443, 700 3,742,500 2,604,700 2,438.500 $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 AH X AVR 299,400 x S 8.14 Flexible Budget AH X SVR 299,400 x S 7.00 Standard Cost (VOH applied) SH X SVR 302.400 X 7 .00 2,438,500 2,095,800 2,116,800 $ 342,700 $ 21,000 Variable overhead spending variance Variable overhead efficiency variance Total variable overhead variance 342.700 Unfavorable 21,000 Favorable 321.700) Unfavorable (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 Budgeted Overhead Actual Fixed OH Cost AH X AFR 299,400 x 8.70 2.604,700 Standard Cost (FOH applied) SH X SFR 302,400 x $ 11.00 2.256,800 3.326,400 S 352, 100 S 369,600 Fixed overhead spending variance Fixed overhead volume variance Total fixed overhead variance $ 352,100 Favorable 369,600 Favorable $ 721,700 Favorable (c) Compute the total overhead controllable varlance. ................. Overhead Controllable Variance Total overhead variance Fixed overhead spending variance Fixed overhead volume variance Total overhead controllable variance
