Required information Use the following information for the Problems below. The following information applies to the questions displayed below) Trico Company set the following standard unit costs for its single product Direct materials (30 lbs. ! $4.40 per Ib.) Direct labor (6 bra. $14 per hr.) Factory overhead Variable (6 hrs. s8 par hr.) Pactory overhead-Pixed (6 hrs. . $12 per hr.) Total standard cont $132.00 84.00 48.00 72.00 $336.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 69,000 units per quarter. The following flexible budget information is available. Operating Levels 701 800 48,300 55,200 289,800 331,200 908 62,100 372.600 Production in unita Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,974,400 $3.974,400 $3,974,400 $2,319,400 $2,649,600 $2,980,000 During the current quarter, the company operated at 90% of capacity and produced 62,100 units of product, actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. During the current quarter, the company operated at 90% of capacity and produced 62,100 units of product, actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. Direct materials (1,863,000 lbs. & $4.40 per Ib.) Direct labor (372,600 hrs. $14 per hr.) Factory overhead (372,600 hrs. $20 per hr. Total standard coat $ 8,197,200 5,216,400 2,452,000 $20,865,600 Actual costs incurred during the current quarter follow. Direct materials (2,466,000 lbs. 57.40 per 1b.) Direct labor (291,000 hrs. $12.60 per hr.) Fixed factory overhead costs Variable factory overhead cost Total actual conta $10,848,400 3,666,600 3,014,600 3,272,200 $20,801, 800 Problem 23.4A Computing materials, labor, and overhead variances LO P3, P4 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 variances. Reg 3 Reg 2 Controllable Reg 4 Volume Variance Variance the direct materials cost variance, including its price and quantity variances (Indicate the effect of each variance by selecting for hvorable, unfavorable, and no variance. places.) Actual Cost Standard Cost Reg 2 > Reg 1 Reg 2 Reg Controllable Variance Req 4 Volume Varance pute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Imal places) Actual Cost Standard Cont Reg 1 Reg 2 Req3 Controllable Variance Req 4 Volume Variance Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Actual overhead Budgeted overhead Controllable variance Req3 Reg 1 Reg 2 Controllable Req 4 Volume Variance Variance Compute the volume variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance
