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he following information applies to the questions displayed below.] The predeter

ID: 2459484 • Letter: H

Question

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The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 80,000 units per quarter. The following flexible budget information is available.

  

  

During the current quarter, the company operated at 80% of capacity and produced 64,000 units of product; actual direct labor totaled 381,000 hours. Units produced were assigned the following standard costs:

  

  

    

Compute the overhead controllable and volume variances.

                                               Controllable Variance

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

Explanation / Answer

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