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) 70.00 Variable overhead (5 hours @ $8 per hour) Fixed overhead (5 hours $10 per hour) Standard cost per unit 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. $120.00 40.00 50.00 $280.00 20 42,000 units 210,000 hours Operating Levels BOX 48,000 units 240,000 hours. SON 54,000 units 270,000 hours Production (in units) Standard direct labor hours (5 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 2,400,000 $1,600,000 $ 2,400,000 $ 1,920,000 $ 2,400,000 $ 2,160,000 Diving the current quarter the comnany onerater at 90% franarity and recret 54 00 nits artulirert ahor Required information og UVEK HELL buget) Fixed overhead $ 2,400,000 $ 2,400,000 $ 2,400,000 Variable overhead $ 1,680,000 $ 1,920,000 $ 2,150,000 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 54 per pound) $ 6,480,000 Direct labor (270,000 hours 514 per hour) 3,780,000 Overhead (220.000 hours $18 per hour) 4,860.000 Standard (budgeted) cost $ 15,120,000 Actual costs incurred during the current quarter follow Direct materials (1,615,00 pounds 14.10 per pound) $ 6,621,500 Direct labor (265,000 hours $13.75 per hour) 2,643,750 Fixed overhead 2,350,000 Variable overhead 2,200,000 Actual cost $ 14,815,250 Problem 8.4A (Static) Computing materials, labor, and overhead variances LO P3, P4 Required information Reg 3 Reg 1 Reg2 Reg 3 Volume Controllable Variance Variance Compute the direct materiais variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, decimal places) Standard Actual Cost $ 0 $ 5 5 Reg 2 > s. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" an Standard Cost 0 10 0 Req2 > Required information Reg 3 Reg1 Reg 2 Controllable Reg 3 Volume Variance Variance Compute the direct labor variance, including its rate and efficiency variances (Indicate the effect of each variance by selecting favorable, unfavorable, cornu to two decimal place) Actual Cost Standard Cont 5 $ 0 5 0 Reg1 Req3 Controllable Variance > Required information Req3 Reg 3 Volume Reg 1 Req 2 Controllable Variance Variance Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfa variance.) Controllable Variance Actual total overhead Budgeted total overhead Controllable variance Required information Req 3 Reg 1 Req 2 Controllable Req 3 Volume Variance Variance Compute the overhead volume variances. (Indicate the effect of the variance by selecting favorable, unfa variance.) Volume variance Budgeted total overhead Standard overhead applied Volume variance
