The tolewing information applies to the questions displnyed below Trico Company

Question

The tolewing information applies to the questions displnyed below Trico Company set the following standwid unt costs for its single product Factory oveeod-ariable (8 hrs 0 56 per u s based on a peser Theb0algfree operating volume of80% ofthe productivecapacny of S2000 ure, per Sandad rect lator hours Fined tactory overhead Variable factory overheaa 291.200 332.800 374,400 During the cament aca" dnectabl, toaled 370,400 hours. Units quarter the company operated the 90% of capacey and produced 40,00 wits ofproduc were assigned the folowing standard costs Direct materiah (1404.000 bs. 0 5510 per b) stendard cost Actual costs incurred during the current quaner follow s 9279500 4.259600 Dieect materials (1.385,000 bs$670 per Db Direct Iebor (370,800 hes $tt 50 per he Faed factory oveshead costs Veriable factory overthead costs Totel actu costs 9752 500 3.Aword: 335 points Required: 1. Compute the direct materials cost variance, inclucing its price and quanltity variances SQ Standard Quantity AP Actual Price SP Standard Price Standard Cost Actual Cost

Explanation / Answer

Answer 1. Actual Direct Material Flexible Budget Standard Cost AQ AR Total AQ SR Total SQ SR Total          1,385,000           6.70            9,279,500          1,385,000                 5.10          7,063,500          1,404,000           5.10          7,160,400    2,216,000.00            96,900.00 Direct Material Price Variance    2,216,000.00 (U) Direct Material Quantity Variance          96,900.00 (F) Total Direct Material Variance    2,119,100.00 (U) Answer 2. Actual Direct Labor Flexible Budget Standard Cost AH AR Total AH SR Total SH SR Total              370,400         11.50            4,259,600              370,400              14.00          5,185,600              374,400         14.00          5,241,600        926,000.00            56,000.00 Direct Labor RAte Variance        926,000.00 (F) Direct Labor Efficiency Variance          56,000.00 (F) Total Direct Labor Variance        982,000.00 (F) Answer 3. Actual Overhead      6,213,400.00 Budgeted Overhead      6,739,200.00 Controllable Variance          525,800.00 (F) Answer 4. Budgeted Fixed Overhead    3,993,600.00 Fixed Overhead Cost Applied    4,444,800.00 Fixed Overhead Volume Variance        451,200.00 (F)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.