Required information Use the following information for the Problems below. [The

Question

Required information Use the following information for the Problems below. [The following information applies to the questions displayed below Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $5.10 per Ib.) Direct labor (8 hrs. e $14 per hr.) Factory overhead-variable (8 hrs. $6 per hr.) Factory overhead-fixed (8 hrs. e $12 per hr.) Total standard cost $ 153.00 112.00 48.00 96.00 $409.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 52,000 units per quarter. The following flexible budget information is available. 80% 41,600 332,800 90% Production in units Standard direct labor hours Budgeted overhead 79% 36,400 291,200 46,800 374,400 Fixed factory overhead Variable factory overhead $3,993,600 $3,993,600 $ 3,993,600 $1,747,200 $1,996,800 $2,246,400 During the current quarter, the company operated at 90% of capacity and produced 46,800 units of product, actual direct labor totaled 370,400 hours. Units produced were assigned the following standard costs 7,160,400 Direct materials (1,404,000 Ibs. e $5.10 per Ib.) Direct labor (374,400 hrs. $14 per hr.) Factory overhead (374,400 hrs. $18 per hr.) Total standard cost 5,241,600 6,739,200 $19,141, 200 Actual costs incurred during the current quarter follow. Direct materials (1,385,800 Ibs. e $6.70 per 1b.) Direct labor (370,400 hrs. $11.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs S 9,279, 500 4,259, 600 3,196,600 3,016,800 $19,752, 500

Explanation / Answer

Actual Cost Actual Qty at Standard price Standard Cost Acutal Qty X Actual price Actual Qty X Std.Price Std.Qty X Std.Price 1385000 X 6.70 1385000 X 5.10 1404000 X 5.10 9279500 7063500 7160400 2216000 -96900 Direct material price variance 2216000 Unfavourable Direct material quantity variance 96900 Favourable Total Drect material variance 2119100 Unfavourable Actual Cost Actual hours at Standard rate Standard Cost Actual hrs X Actual rate Actual hrs X Std.rate Std.hours X Std.rate 370400 X 11.50 370400 X 14.00 374400 X 14.00 4259600 5185600 5241600 -926000 -56000 Direct material price variance 926000 Favourable Direct material quantity variance 56000 Favourable Total Drect material variance 982000 Favourable Controllable Variance Actual overhead 3016000 Budgeted Overhead 2246400 Controllable variance 769600 Unfavourable Fixed Overhead Volume Variance Budgeted fixed overhead 3993600 Fixed overhead cost applied 4492800 Controllable variance 499200 Unfavourable

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