Trico Company set the following standard unit costs for its single product Direct materials (30 lbs. @ $5.10 per Ib.) Direct labor (4 hrs. $15 per hr.) Factory overhead-Variable (4 hrs. @ $6 per hr.) Factory overhead-Fixed (4 hrs. @ $18 per hr.) Total standard cost $ 153.00 60.00 24.00 40.00 $277.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 68,000 units per quarter. The following flexible budget information is available. Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead Operating Levels 70% BOX 90% 47,600 54,400 61,200 190,400 217,600 244,800 $2,176,000 $2,176,000 $2,176,000 $1,142,400 $1,305,600 $1,468,800 During the current quarter, the company operated at 90% of capacity and produced 61,200 units of product, actual direct labor totaled 238,800 hours. Units produced were assigned the following standard costs. Direct materials (1,836,000 lbs. $5.10 per Ib.) Direct labor (244,800 hrs. @ 515 per her) Factory overhead (244,800 hrs. @ 516 per hr.) Total standard cost $ 9,363,600 3,672,000 3,916,800 $16,952,400 Actual costs incurred during the current quarter follow. Direct materials (1,822,000 lbs. @ $6.70 per lb.) Direct labor (238,800 hrs. @ $12.10 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $12,207,400 2,889,480 1,942,700 1,668,700 $18,708,280 Reg 3 Reg Rea 2 Controllable Req 4 Volume Varlano Variance Compute the direct materials cost varlance, including its price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance Re places Actual Cost Standard Cont Rega Reg 1 Reg 2 Controllable Rez 4 Volume Variance Variance Compute the direct labor cost variance, including its rate and efficiency variances (toate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round decimal places Actual Cost Standard Cour Complete this question by entering your answers in the tabs below. Req3 Reg 1 Reg 2 Controllable Req 4 Volume Variance 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 Reg 1 Reg 2 Reg 3 Reg 4 Volume Controllable 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 food overhead Fixed overhead cost applied Fixed overhead volume variance
