Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below Trico Company set the following standard unit costs for its single product Direct naterials (30 Ibs.$4.80 per Ib.) Direct labor (6 hrs. e $14 per hr.) Factory overhead-variable (6 hr. $7 per hr Factory overhead-fixed (6 hrs. $9 per hr Total standard cost $144.00 84.00 42.00 54.00 $324.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 57,000 units per quarter. The following flexible budget information is available. Operating Levela 90% 39,900 239,400 51,300 307,800 45,600 Production in units Standard direct labor hours Budgeted overhead 273,600 Fixed factory overhead Variable factory overhead $2,462,400 $2,462,400 2, 462,400 $1,675,800 $1,915,200 $2,154,600 During the current quarter, the company operated at 90% of capacity and produced 51,300 units of product actual direct labor totaled 304,800 hours. Units produced were assigned the following standard costs Direct materials (1,539,000 Ibs. $4.80 per Ib.) Direct labor (307, 800 hrs. e $14 per hr Factory overhead (307,800 hrs. $16 per h.4 924.800 Total standard cost P7,387,200 4,309,200 $16,621,200 Actual costs incurred during the current quarter follow Direct materials (1,519,000 Ibs. e $7.30 per 1b. 11,088,700 Direct labor (304, 800 hrs. $13.00 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual conts 3,962,400 2,337,000 2,187,800 $19,575,900

Explanation / Answer

Answer 1. Actual Direct Material Flexible Budget Standard Cost AQ AR Total AQ SR Total SQ SR Total          1,519,000           7.30          11,088,700          1,519,000                 4.80          7,291,200          1,539,000           4.80          7,387,200    3,797,500.00            96,000.00 Direct Material Price Variance    3,797,500.00 (U) Direct Material Quantity Variance          96,000.00 (F) Total Direct Material Variance    3,701,500.00 (U) Answer 2. Actual Direct Labor Flexible Budget Standard Cost AH AR Total AH SR Total SH SR Total              304,800         13.00            3,962,400              304,800              14.00          4,267,200              307,800         14.00          4,309,200        304,800.00            42,000.00 Direct Labor RAte Variance        304,800.00 (F) Direct Labor Efficiency Variance          42,000.00 (F) Total Direct Labor Variance        346,800.00 (F)

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