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Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $4.80 per Ib $144.00 Direct labor (7 hrs. @
Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $4.80 per Ib $144.00 Direct labor (7 hrs. @ $14 per hr.) Factory overhead-variable (7 hrs.@ $6 per 98.00 42.00 Factory overhead-fixed (7 hrs. @ $9 per hr) 63.00 Total standard cost $347.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 64,000 units per quarter. The following flexible budget information is available Operating Levels Production in units Standard direct labor hourS Budgeted overhead 70% 44,800 313,600 80% 51,200 358,400 90% 57,600 403, 200 Fixed factory overhead $3,225,600 $3,225,600 $3,225,600 Variable factory overhead $1,881,600 $2,150,400 $2,419,200
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