The predetermined overhead rate is based on a planned operating volume of 70% of

Question

   

  

The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available.

  

  

During the current quarter, the company operated at 80% of capacity and produced 40,000 units of product; actual direct labor totaled 313,000 hours. Units produced were assigned the following standard costs:

  

  

    

Trico Company set the following standard unit costs for its single product. Required ; 1the direct . Compute materials cost variance, including its price and quantity variances. (Round actual price to 2 decimal places.) Actual cost Standard cost AQ AP AQ AP SQ SP

Explanation / Answer

Direct labor

(No Actual cost given)

AQ*AP AQ*SR SQ*SR 1,035,000*4.10 1,035,000*4 (40,000*26) *4 4,243,500 $4,140,000 $4,160,000

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