Use the following information for the Problems below Trico Company set the following standard unit costs for its single product Direct materials (30 Ibs $5 50 per Ib ) $ 165 00 Direct labor (7 hrs $14 per hr ) 98 00 Factory overheadvariable (7 hrs $6 per hr ) 42 00 Factory overheadfixed (7 hrs $12 per hr ) 84 00 Total standard cost $ 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 90 Production in units 43,400 49,600 55,800 Standard direct labor hours 303,800 347,200 390,600 Budgeted overhead Fixed factory overhead $ 4,166,400 $ 4,166,400 $ 4,166,400 Variable factory overhead $ 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 Ibs $5 50 per Ib ) $ 9,207,000 Direct labor (390,600 hrs $14 per hr ) 5,468,400 Factory overhead (390,600 hrs $18 per hr ) 7,030,800 Total standard cost $ 21,706,200 Actual costs incurred during the current quarter follow Direct materials (1,658,000 Ibs $7 60 per lb ) $ 12,600,800 Direct labor (386,600 hrs $12 00 per hr ) 4,639,200 Fixed factory overhead costs 3,321,400 Variable factory overhead costs 3,109,400 Total actual costs $ 23,670,800 Problem 8 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 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 Actual Cost Standard Cost AP SQ AQ AQ SP SP Direct materials price variance 0 Unfavorable Direct materials quantity variance 0 Favorable Total direct materials variance Unfavorable 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 Actual Cost Standard Cost AH SR AH AR SH SR $ 0 Favorable Direct labor rate variance o Favorable Direct labor efficiency variance Total direct labor variance Favorable 3 Compute the overhead controllable and volume variances 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. Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @

Use the following information for the Problems below. Trico Company set the following standard unit costs for its single product.


Direct materials (30 Ibs. @ $5.50 per Ib.)	$	165.00
Direct labor (7 hrs. @ $14 per hr.)		98.00
Factory overheadvariable (7 hrs. @ $6 per hr.)		42.00
Factory overheadfixed (7 hrs. @ $12 per hr.)		84.00
Total standard cost	$	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%		90%
Production in units		43,400		49,600		55,800
Standard direct labor hours		303,800		347,200		390,600
Budgeted overhead
Fixed factory overhead	$	4,166,400	$	4,166,400	$	4,166,400
Variable factory overhead	$	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 Ibs. @ $5.50 per Ib.)	$	9,207,000
Direct labor (390,600 hrs. @ $14 per hr.)		5,468,400
Factory overhead (390,600 hrs. @ $18 per hr.)		7,030,800
Total standard cost	$	21,706,200

Actual costs incurred during the current quarter follow.


Direct materials (1,658,000 Ibs. @ $7.60 per lb.)	$	12,600,800
Direct labor (386,600 hrs. @ $12.00 per hr.)		4,639,200
Fixed factory overhead costs		3,321,400
Variable factory overhead costs		3,109,400
Total actual costs	$	23,670,800

Problem 8-4A 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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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 Actual Cost Standard Cost AP SQ AQ AQ SP SP Direct materials price variance 0 Unfavorable Direct materials quantity variance 0 Favorable Total direct materials variance Unfavorable 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 Actual Cost Standard Cost AH SR AH AR SH SR $ 0 Favorable Direct labor rate variance o Favorable Direct labor efficiency variance Total direct labor variance Favorable 3. Compute the overhead controllable and volume variances. 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