Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.50 per Ib.) Direct labor (7 hrs. @ $14 per hr.) Factory overhead-Variable (7 hrs. @ $6 per hr.) Factory overhead-Fixed (7 hrs. @ $12 per hr.) Total standard cost $ 165.00 98.00 42.00 84.00 $ 389.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 62,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 43,400 49,600 303,800 347,200 90% 55,800 390,600 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $4,166,400 $4,166,400 34,166,400 $1,822,800 $2,083,200 $2,343,600 During the current quarter, the company operated at 90% of capacity and produced 55,800 units of product; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. Direct materials (1,674,000 lbs. @ $5.50 per Ib.) Direct labor (399,600 hrs. @ $14 per hr.) Factory overhead (390,600 hrs. @ $18 per hr.) Total standard cost $ 9,207,600 5,468,400 7,030,800 $21,706, 200 Required: Compute the direct materials cost variance, including its price and quantity variances 2. Compute the direct labor cost variance, including its rate and efficiency vartances 3. Compute the overhead controllable and volume variances Complete this question by entering your answers in the tabs below. Req Reg 2 beg 3 Controllable Variance Reg 4 volume Variance Compute the direct materials cont varlance, including its price and quantity variances. (Indicate the effect of such variance by selection for favorable, untuvorable and move Actual Cost Standard Cost Reg 1 Reg 2 Rega Controllable Variance Reg Volume Variance Compute the direct labor cost varlance, including its rate and efficiency variances (Indicate the effect of each variance by selecting for favorable, untavorable, and to varian decimal place Actual Cost Standard Cost
Req3 Req 1 Req 2 Controllable Req 4 Volume Variance Variance Compute the controllable variance. (Indicate the effect of each variance by selecting for favorabl variance.) Controllable Variance Actual overhead Budgeted overhead Controllable variance RAGLA Valmus Verano Req 1 Reg 2 Reg 3 Controllable Variance Req 4 Volume Variance! Compute the volume variances. (Indicate the effect of each varian Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance Req3 Req 1 Req 2 Controllable Req 4 Volume Variance Variance Compute the controllable variance. (Indicate the effect of each variance by selecting for favorabl variance.) Controllable Variance Actual overhead Budgeted overhead Controllable variance RAGLA Valmus Verano Req 1 Reg 2 Reg 3 Controllable Variance Req 4 Volume Variance! Compute the volume variances. (Indicate the effect of each varian Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance
