TRICO COMPANY Standard Unit Costs Total Pounds Hours Cost 7 Direct materials 30 4.00 S 120 8 Direct labor 4.00 70 9 Factory overhead variable 8.00 40 Factory overhead fixed 5 S 10.00 50 1 Total standard cost 280 13 operating volume as percentage 4 of productive capacity per quarter 80% 15 Productive capacity per quarter in units 60,000 TRICO COMPANY Flexible Budget Information 20 Operating Levels 70% 23 Production in units 42,000 48,000 54,000 24 Standard direct labor hours 210,000 240,000 270,000 25 Budgeted overhead 26 Fixed factory overhead 2,400,000 2,400,000 2,400,000 27 Variable factory overhead s 1,680,000 S 1,920,000 S 2,160,000 28 30 TRICO COMPANY Standard Unit Costs for 54,000 units. 90% Capacity 33 Pounds Hours Cost Total 4.00 6,480,000 35 Direct material 1,620,000 270,000 s 14.00 3,780,000 36 Direct labor 87 Factory overhead 270,000 18.00 4,860,000 8 Total standard cost 15,120,000 39 40 Actual costs incurred during quarter: 42 Direct material 1,615,000 4.10 6,621,500 43 Direct labor 265,000 13.75 3,643,750 4 Fixed factory overhead 2,350,000 5 Variable factory overhead 2,200,000 6 Total actual cost 14,815,250 8 Check figures: 9 (1) Materials variances 50 Price 161,500 U Quantity 20,000 F 62 (2) Labor variances 63 Rate 66,250 F 64 Efficiency 70,000 F 65