Trico Company set the following standard unit costs for its single product. Dire
ID: 2498866 • Letter: T
Question
Trico Company set the following standard unit costs for its single product. Direct materials (26 Ibs. @ $3.00 per Ib.) $ 78.00 Direct labor (6 hrs. @ $6.00 per hr.) 36.00 Factory overhead—variable (6 hrs. @ $4.00 per hr.) 24.00 Factory overhead—fixed (6 hrs. @ $5.00 per hr.) 30.00 Total standard cost $ 168.00 The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available. Operating Levels 50% 60% 70% Production in units 25,000 30,000 35,000 Standard direct labor hours 150,000 180,000 210,000 Budgeted overhead Fixed factory overhead $ 900,000 $ 900,000 $ 900,000 Variable factory overhead $ 600,000 $ 720,000 $ 840,000 During the current quarter, the company operated at 70% of capacity and produced 35,000 units of product; actual direct labor totaled 204,000 hours. Units produced were assigned the following standard costs: Direct materials (910,000 Ibs. @ $3.00 per Ib.) $ 2,730,000 Direct labor (210,000 hrs. @ $6.00 per hr.) 1,260,000 Factory overhead (210,000 hrs. @ $9.00 per hr.) 1,890,000 Total standard cost $ 5,880,000 Actual costs incurred during the current quarter follow: Direct materials (905,000 Ibs. @ $3.10) $ 2,805,500 Direct labor (204,000 hrs. @ $5.75) 1,173,000 Fixed factory overhead costs 1,809,057 Variable factory overhead costs 1,693,585 Total actual costs $ 7,481,142 rev: 01_19_2015_QC_CS-3499 References Section BreakProblem 23-1A Computation of materials, labor, and overhead variances LO P2, P3 44.value: 5.00 pointsRequired information Problem 23-1A Part 1 Required: 1. Compute the direct materials cost variance, including its price and quantity variances.(Round actual price to 2 decimal places.)
they want it entered like this
1 .AQxAP (number times number) AQxSP (number times number) SQxSP (number times number)
2. AHxAR (number times numer) AHxSR (number times number) SHx SR (number times number)
3. fixed overhead applied
fixed OH per DL hour (enter number)
standard DL hours (enter number)
Total fixed overhead applied (enter number)
Fixed overhead applied
Total fixed overhead applied (enternumber)
Total budgeted fixed OH (enter number)
fixed overhead volume variance (enter number)
Overhead Controllable Variance
variable overhead spending variance (enter number)
actual overhead (enter number)
Overhead controllable variance (enter numbe)
Explanation / Answer
Actual Quantity x Actual Price-Actual Quantity x Standard Price
Actual Quantity x Standard Price - Standard Quantity x Standard Price
Direct Labor Rate Variance:
Direct Labor Effciency Variance:
Actual Hours x Standard Rate - Standard Hours x Standard Rate
Direct Material 78 26*3 Direct Labor 36 6*6 Factory overheads-variable 24 6*4 Factory overheads-Fixed 30 6*5 Total standard cost 168 Production capacity 50000 Plannned operating volume 30000 50000*60% Operating levels 50% 60% 70% Production in units 25000 30000 35000 Budgeted Direct labor hours 150000 180000 210000 Direct labor cost 900000 1080000 1260000 Budgeted overhead Fixed factory 900000 900000 900000 Variable facotry overhead 600000 720000 840000 Acutal Direct labor hours 204000 Direct material 2730000 910000*3 Direct labor cost 1260000 210000*6 Factory overheads 1890000 210000*9 Total standard cost 5880000 Actual cost incurred : Direct material 2805500 905000*3.1 Direct labor cost 1173000 204000*5.75 Factory overheads-variable 1693585 Factory overheads-Fixed 1809057 Total Actual cost 7481142 Direct material price variance:Actual Quantity x Actual Price-Actual Quantity x Standard Price
905000*3.1-(905000*3) 90,500 Direct material quantity variance:Actual Quantity x Standard Price - Standard Quantity x Standard Price
905000*3-910000*3 (15,000)Direct Labor Rate Variance:
AHxAR - AH*SR 204000*5.75-204000*6 -51000Direct Labor Effciency Variance:
Actual Hours x Standard Rate - Standard Hours x Standard Rate
204000*6-210000*6 -36000 Fixed overheads applied fixed OH per DL hour 1890000/204000 9.26 standard DL hours = 210000 Total fixed overheads applied: 1734600 210000*8.26 variable overhead spending varianceRelated Questions
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