Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Use the following information for the Problems below. (Static) (The following information applies to the questions displayed below.) Trini Company set the following

image text in transcribedimage text in transcribed

Required information Use the following information for the Problems below. (Static) (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 @ $4 per pound) Direct labor (5 hours @ $14 per hour) Variable overhead (5 hours @ $8 per hour) Fixed overhead (5 hours @ $10 per hour) Standard cost per unit $ 120.00 70.00 40.00 50.00 $ 280.00 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 60,000 units per quarter. The following additional information is available. 70% 42,000 units 210,000 hours. Operating Levels 80% 48,000 units 240,000 hours. 908 54,000 270,000 units hours. Production (in units) Standard direct labor hours (5 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 2,400,000 $ 1,680,000 $ 2,400,000 $ 1,920,000 $ 2,400,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1,620,000 pounds @ $4 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours @ $18 per hour) Standard (budgeted) cost $ 6,480,000 3,780,000 4,860,000 $ 15,120,000 Actual costs incurred during the current quarter follow. Direct materials (1,615,000 pounds @ $4.10 per pound) Direct labor (265,000 hours @ $13.75 per hour) Fixed overhead Variable overhead $ 6,621,500 3,643,750 2,350,000 2,200,000 $ 14,815, 250 Actual cost Controllable Variance Actual total overhead Budgeted total overhead Controllable variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Fraud Prevention And Detection

Authors: Joseph T. Wells

5th Edition

1119351987, 9781119351986

More Books

Students also viewed these Accounting questions

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

How might a countrys culture be a barrier to global business?

Answered: 1 week ago