Use the following information for the Problems below The following information applies to the questions displayed below Trico Company set the following standard unit costs for its single product Direct materials (30 Ibs $4 per Ib ) $ 120 00 Direct labor (5 hrs $14 per hr ) 70 00 Factory overheadvariable (5 hrs $8 per hr ) 40 00 Factory overheadfixed (5 hrs $10 per hr ) 50 00 Total standard cost $ 280 00 The predetermined overhead rate is based on a planned operating volume of 80 of the productive capacity of 60,000 units per quarter The following flexible budget information is available Operating Levels 70 80 90 Production in units 42,000 48,000 54,000 Standard direct labor hours 210,000 240,000 270,000 Budgeted overhead Fixed factory overhead $ 2,400,000 $ 2,400,000 $ 2,400,000 Variable factory overhead $ 1,680,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90 of capacity and produced 54,000 units of product actual direct labor totaled 265,000 hours Units produced were assigned the following standard costs Direct materials (1,620,000 Ibs $4 per Ib ) $ 6,480,000 Direct labor (270,000 hrs $14 per hr ) 3,780,000 Factory overhead (270,000 hrs $18 per hr ) 4,860,000 Total standard cost $ 15,120,000 Actual costs incurred during the current quarter follow Direct materials (1,615,000 Ibs $4 10 per lb ) $ 6,621,500 Direct labor (265,000 hrs $13 75 per hr ) 3,643,750 Fixed factory overhead costs 2,350,000 Variable factory overhead costs 2,200,000 Total actual costs $ 14,815,250 Problem 21 4A Computation of materials, labor, and overhead variances LO P2, P3 Required 1 Compute the direct materials cost variance, including its price and quantity variances AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 2 Compute the direct labor cost variance, including its rate and efficiency variances AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate 3 Compute the overhead controllable and volume variances Standard Cost SQ X SP Actual Cost AQ 1,615,000 X $ 6,621,500 AP 4 10 AQ 1,615,000 SP 4 00 $ $ $ 6,460,000 $ 161,500 $ 0 Unfavorable $ 161,500 $ 0 Favorable Unfavorable Actual Cost Standard Cost $ 0 $ $ 0 Favorable 0 Favorable Favorable Controllable Variance Actual overhead Budgeted overhead Controllable variance Favorable Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance Favorable

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Use the following information for the Problems below. [The following information applies to the questions displayed below.] Trico Company set the following standard unit costs

Use the following information for the Problems below.

[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product.


Direct materials (30 Ibs. @ $4 per Ib.)	$	120.00
Direct labor (5 hrs. @ $14 per hr.)		70.00
Factory overheadvariable (5 hrs. @ $8 per hr.)		40.00
Factory overheadfixed (5 hrs. @ $10 per hr.)		50.00
Total standard cost	$	280.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		42,000		48,000		54,000
Standard direct labor hours		210,000		240,000		270,000
Budgeted overhead
Fixed factory overhead	$	2,400,000	$	2,400,000	$	2,400,000
Variable factory overhead	$	1,680,000	$	1,920,000	$	2,160,000

During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs.


Direct materials (1,620,000 Ibs. @ $4 per Ib.)	$	6,480,000
Direct labor (270,000 hrs. @ $14 per hr.)		3,780,000
Factory overhead (270,000 hrs. @ $18 per hr.)		4,860,000
Total standard cost	$	15,120,000

Actual costs incurred during the current quarter follow.


Direct materials (1,615,000 Ibs. @ $4.10 per lb.)	$	6,621,500
Direct labor (265,000 hrs. @ $13.75 per hr.)		3,643,750
Fixed factory overhead costs		2,350,000
Variable factory overhead costs		2,200,000
Total actual costs	$	14,815,250

Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3

Required: 1. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

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2. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate image text in transcribed

3. Compute the overhead controllable and volume variances. image text in transcribed

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Standard Cost SQ X SP Actual Cost AQ 1,615,000 X $ 6,621,500 AP 4.10 AQ 1,615,000 SP 4.00 $ $ $ 6,460,000 $ 161,500 $ 0 Unfavorable $ 161,500 $ 0 Favorable Unfavorable Actual Cost Standard Cost $ 0 $ $ 0 Favorable 0 Favorable Favorable Controllable Variance Actual overhead Budgeted overhead Controllable variance Favorable Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance Favorable