Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. @ $4.80 per Ib.) Direct labor (8 hrs. @

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. @ $4.80 per Ib.) Direct labor (8 hrs. @ $16 per hr.) Factory overhead-variable (8 hrs. @ $9 per hr.) Factory overhead-fixed (8 hrs. @ $12 per hr.) Total standard cost $144.00 128.00 72.00 96.00 $448.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 59,000 units per quarter. The following flexible budget information is available. Operating Levels 78% Production in units 41,300 47,200 53,100 Standard direct labor hours 330,400 377,600 424,800 Budgeted overhead Fixed factory overhead $4,531,200 $4,531,200 $4,531,200 Variable factory overhead $2,973,600 $3,398, 400 $3,823, 200 88% 90% During the current quarter, the company operated at 90% of capacity and produced 53,100 units of product, actual direct labor totaled 420,800 hours. Units produced were assigned the following standard costs. During the current quarter, the company operated at 90% of capacity and produced 53,100 units of product, actual direct labor totaled 420,800 hours. Units produced were assigned the following standard costs. Direct materials (1,593,000 lbs. @ $4.80 per Ib.) Direct labor (424,800 hrs. @ $16 per hr.) Factory overhead (424,800 hrs. @ $21 per hr.) Total standard cost $ 7,646,400 6,796,800 8,920,800 $23,364,000 Actual costs incurred during the current quarter follow. Direct materials (1,582,000 lbs. $5.99 per lb.) Direct labor (420,800 hrs. @ $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 9,333,800 5,260,000 4,297,600 4,023,200 $22,914,600 (a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour answers to 2 decimal places.) AH = Actual Hours SH - Standard Hours AVR Actual Variable Rate SVR = Standard Variable Rate Flexible Budget Standard Cont (VOH applied) Actual Variable OH Cost AH x AVR 1,582,000 X $5.90 9,333,800 $ 0 0 (b) Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour answers to 2 decimal places.) AH = Actual Hours SH - Standard Hours AFR = Actual Fixed Rate SFR = Standard Fixed Rate Actual Fixed OH Cont Budgeted Overhead Standard Cost (FOH applied) (c) Compute the total overhead controllable variance. Overhead Controllable Variance 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

Rethinking Public Private Partnerships

Authors: Mervyn K. Lewis

1st Edition

1789906393, 9781789906394

More Books

Students also viewed these Accounting questions

Question

What is your greatest weakness?

Answered: 1 week ago