Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. $4.48 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 $132.00 84.60 54.88 72.ee $ 342.60 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. Operating Levels 70% 82% 38,588 44,000 231,600 264.ee 90% 49,588 297.ee Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,168,800 $3,168,000 $3,168, eee $2,679,000 $2,376,699 $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 292000 hours. Units produced were assigned the following standard costs. Direct materials (1,495,000 lbs. $4.40 per Ib.) Direct labor (297, 200 hrs. $14 per hr.) Factory overtread (297,088 hrs. $21 per hr.) Total standard cost $ 6,534,828 4,158,000 6,237,eee $16,929,620 Actual costs incurred during the current quarter follow. Direct materials (1,474,82 Tbs. & 57.48 per 1b.) Direct labor (292,888 hrs. $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $18,9e7,600 3,650.800 3.814.700 2.822,300 $28.394,6ee (a) Compute the variable overhead spending and efficiency variances. (b) Compute the fixed overhead spending and volume varlances. (c) Compute the total overhead controllable variance. Required A Required B Required c Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 0 S 0 Variable overhead spending variance Variable overhead efficiency variance Total variable overhead variance 0 Required Required B > (a) Compute the variable overhead spending and efficiency variances. (b) Compute the fixed overhead spending and volume variances. (c) Compute the total overhead controllable variance. Required A Required B Required Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour answers to 2 decimal places.) Actual Fixed OH Cost Budgeted Overhead Standard Cost (FOH applied) 0 S 0 0 (a) Compute the variable overhead spending and efficiency varlances. (b) Compute the fixed overhead spending and volume varlances. (c) Compute the total overhead controllable variance. Required A Required B Required c Compute the total overhead controllable variance. Overhead Controllable Variance Total overhead controllable variance
