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HOMEWO a Secure https//newconnect.mheducation.com/flow/connect.html Help Save&Exit; S er 23- HOMEWORK-p284 Check my w Required Information Use the following informetion for the Problems below. The following information applies to the questions displayed below] Trico Company set the following standard unit costs for ts single product 5 153.00 90.e0 Direct materials (38 Ibs. 55.10 per Ib. Direct labor (6 hrs. $15 per hr.) factory overhead-variable (6 hrs.57 per hr.) Factory overhead-Fixed (6 hrs.$11 per hr.) Total standard cost 66.00 5 351.ee The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 56,000 units per quarter. The following flexible budget information is availiable e,400 382,400 39, 200 Production in Standard direct labor hours 44,800 235,200 268,800 ed overhead Fixed factory overhead Variable factory overhead $2,956,see $1.646,000 $2,956,800 %1,881,600 %2,956,800 s2,116 , seo Dunng the current quarter, the company operated at 90% of capacity and produced 50,400 units of product, actual direct labor totaled 299.400 hours. Units produced were assigned the following standard COSIS ?rect saterials (1,s12,000 lbs. @ $5.ie per Ib.) pirect labor (3e2,48e hrs. e s15 per hr.) Factory overhead (382,489 hrs, s18 per.) total standard cost s 7,711,299 $17,690, 4ee Actual costs incurred during the current quarter follow Direct naterials (a,499,eee es 3b. se per 1b. Direct laber (299,40e hrs. $12.58 per hr.) Pixed factory overhead costs Variable factory overhaad costs 9,443,7ee 3,742,580 2,664,70e otal actval cests 18,229,40 Problem 23-4A Computation of materials, labor, and overhead variances LO P2, P3 KPrey 2 of 2 NetExplanation / Answer
1. Direct Material Cost Variance: DMPV + DMQV = 1798800 U + 66300F = 1732500 U DMPV (actual price - standard price ) * actual usage (6.30 - 5.10) * 1499000 1798800 U DMQV (Std. quantity for actual production - Actual usage) * Std. Price (30*50400 - 1499000) * 5.10 66300 F 2) Direct Labor Cost Variance : DLRV + DLEV = 748500 F +45000 F = 793500 F DLRV (actual rate - standard rate) * actual labor hours (12.50 - 15) * 299400 748500 F DLEV (Std. hours for actual production - actual hours) * Std.rate (50400*6 - 299400) * 15 45000 F 3) Overhead controllable and volume variances: Controllable Variance : Actual Factory overhead - Budgeted allowance on Std. hours allowable (2604700 + 2438500) - (2956800 + 50400*6*7) = $30400 F Fixed Overhead Volume Variance : (Actual units * Std rate) - Budgeted Fixed overhead (50400*6*11) - 2956800 = 369600 U
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