Trico Company set the following standard unit costs for its single product. Dire

Question

Trico Company set the following standard unit costs for its single product. Direct materials (28 lbs. @ $4.70 per lb.) Direct labor (6 hrs. @ $9.00 per hr.) Factory overhead-variable (6 hrs. $5.10 per hr.) Factory overhead-fixed (6 hrs. $7.60 per hr.) $131.60 54.00 30.60 45.60 lotal standard cost $261.80 The predetermined overhead rate is based on a planned operating volume of 80% of the prod capacity of 68,000 units per quarter. The following flexible budget information is available. Operating Levels 80% 54,400 326,400 90% Production in units Standard direct labor hours Budgeted overhead 47,600 285,600 61,200 367,200 Fixed factory overhead Variable factory overhead $2,480,640 $2,480,640 $2,480,640 $1,456,560 $1,664,640 $1,872,720 During the current quarter, the company operated at 70% of capacity and produced 47,600 units of pr actual direct labor totaled 282,600 hours. Units produced were assigned the following standard costs: Direct materials (1,332,800 lbs. @ $4.70 per lb.) Direct labor (285,600 hrs.@ $9.00 per hr.) Factory overhead (285,600 hrs. @ $12.70 per hr.) $ 6,264,160 2,570,400 3,627,120 lotal standard cost $ 12,461,680

Explanation / Answer

Units Produced                47,600 Actual Std for 47600 units Variable Factory OH Cost          1,398,870                                          1,456,560 Actual Var OH /unit                        29                                                        31 Actual DLH              282,600                                              285,600 Actual OH/ DLH Rate                     4.95                                                     5.10 DLH /unit                     5.94                                                           6 Variable OH Spending Variance= Actual OH Hrs(Actual Var OH Rate-Std Var OH Rate) =282600*0.15                42,390 F Variable OH Efficiency Variance =Std Var OH Rate(Actual Hrs-Std Hrs)=5.10*3000                15,300 F Total                57,690 F Fixed Overhead Volume Variance=Absorbed Fixed overheads-Budgeted Fixed Overheads Actual out put                47,600 Budgeted Fixed OH absorption rate/unit $                                              45.60 Absorbed Fixed OH =47600*45.60=          2,170,560 Budgeted Fixed OH          2,480,640 Fixed OH Vol Variance              310,080 F Fixed OH spening Variance= Actual Fixed OH-Budgeted Fixed OH= (2433640-2480640)=                47,000 F Total Overhead Controllable Variance= Acctual Total Overhead Expense- Std Hrs For Actual Prod*Std Total OH Rate =(2433640+1398870)-285600*12.7 =                                        205,390.00 F

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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