Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. $4.40 per Ib.) Direct labor (6 hrs. @ $14
Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. $4.40 per Ib.) Direct labor (6 hrs. @ $14 per hr.) Factory overhead-variable (6 hrs. @ $9 per hr.) Factory overhead-fixed (6 hrs. $12 per hr.) Total standard cost $ 132.ee 84.00 54.00 72.00 $ 342.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 55,000 units per quarter. The following flexible budget information is available. 90 Operating Levels 70% 80% 38,500 44,000 231,000 264,000 49.500 297,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,168,000 $3,168,000 $2,079,000 $2,376,000 $3,168,000 $2,673,000 During the current quarter, the company operated at 90% of capacity and produced 49,500 units of product, actual direct labor totaled 292,000 hours. Units produced were assigned the following standard costs Direct materials (1,485,800 Ibs. @ $4.40 per Ib.) Direct labor (297,000 hrs. @ $14 per hr.) Factory overhead (297,000 hrs. @ $21 per hr.) Total standard cost $ 6,534,000 4,158,00 6,237,000 $16,929,000 Actual costs incurred during the current quarter follow Direct materials (1,474,000 lbs. @ $7.40 per lb.) Direct labor (292,000 hrs. @ $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $19,907,600 3,650.000 3,014,709 2,822,300 $20, 394,600 Answer is complete and correct. Actual Cost Standard Cost SO SP AQ 1.474 000 1.474.000 X $ 7.40 1,485.000 $ 440 10.907 600 6,485,600 6,534,000 4.422.000 $48,400 Unfavorable Direct materials price variance Direct materials quantity variance Total direct materiais variance 4.422.000 48,400 2.373.600 Favorable Unfavorable Answer is complete and correct. Actual Cost Standard Cost P AR SR AH 292.000 X x SR $14.00 SH 297,000 $12.50 292,000 $14.00 3.650.000 4,088,000 4,158,000 438 000 $70,000 Favorable Direct labor rate variance Direct labor efficiency variance Total direct labor variance 438,000 70,000 Favorable 508,000 Favorable 3. Compute the overhead controllable and volume variances. X Answer is not complete. Controllable Variance Actual overhead $ 5,837,000 Budgeted overhead Controllable variance Favorable & Answer is not complete. Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance Favorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started