The tolewing information applies to the quessions displnyed below Trico Company

Question

The tolewing information applies to the quessions displnyed below Trico Company set the following standaid unt couts for its single product 153 00 Factory overhend-wed52 per t) Total standard cost overhead rate is based on a planned operating volute ef so% of the productive capacty of 52,000 unts per quarter The tollowing flexibe Standard direct lsbor 291.200 332.800 374,400 Fixed tactory overhead Variable factory overhead 1347200$19 800 2.24.400 totaled 370A00 hours. Units During the current quarter, the quart" h company operated et 90% of capacey Ond produced 40,00-its afproducaca" drect were assigned the foowing standard costs. Direct matenah (1404000 s $510 per b) Factory oveshead (374400 Ns51 per he 5.241800 Actual costs incurred during the current quaner follow s 8273500 4.259,600 3196600 Dieect materials (1.385,000 bs5670 per b Faed factory ovethead costs Veriable factory overhead costs Totel actu costs 9752 500 3. Award: 375 poiets Required: 1. Compute the direct materials cost variance, inckucing ts price and quantity variances AQ Actual Quantity SQ Standard Quantity SP Standard Price Standard Cost Actual Cost

Explanation / Answer

Actual Standard AP * AQ SP * AQ SP * SQ 6.7 1385000 5 1385000 5.1 1404000 9279500 7,063,500 7063500 7160400 -2,216,000 96900 Material price Variance 2,216,000 Unfavorable material Quantity Vvariance 96,900 Favorable Material cost Variance 2,119,100 Unfavorable

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