https://newconnect.mheducation.com/flow/connect.html Required information Use th
ID: 2514780 • Letter: H
Question
https://newconnect.mheducation.com/flow/connect.html 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. $5.18 per Ib.) Direct labor (4 hrs. $15 per hr.) Factory overhead-variable (4 hrs. $6 per hr.) Factory overhead-fixed (4 hrs. $11 per hr.) Total standard cost 153.88 60.80 24.8e 44.88 281.80 The predetermined overhead rate is based on a planned operating volume of 80% of the product units per quarter. The following flexible budget information is available erating Levels 80% 54,480 199,480 217,688 244, 880 70% 47,688 9e% 61,288 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $2,393, 688 $2,393,680 $2,393,68e $1,142,488 $1,305,688 $1,468,888 During the current quarter, the company operated at 90% of capacity and produced 61,200 units of labor totaled 239,800 hours. Units produced were assigned the following standard costs. Direct materials (1,836,888 Ibs. 5.18 per Ib.) Direct labor (244,888 hrs. $15 per hr.) Factory overhead (244,8?? hrs. @ $17 per hr.) Total standard cost 9,363, 6ee 3,672,880 4,161, 680 $17,197,200 Actual costs incurred during the current quarter follow Direct materials (1,826,89 Ibs.$6.78 per 1b.) Direct labor (239,800 hrs. @ $12.00 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $12,234,200 2,877,600 1,942, 888 818,80e $18,873,400 ere to search 0Explanation / Answer
Answer for 1&2 are available and hence, 3 is considered as requirement and in table formate it would be difficult to explain.
Answer for 3)
Actual Overhead:
Actual fixed overhead costs+Actual variable overhead costs
=$1942800+1818800=$3761600
Budgeted overhead:
Budgeted fixed overheads+Budgeted variable overhead:
$2393600+(budgeted rate × STD. Hours)
$2393600+(244800 hours×$6)=$3862400
Controllable variance :
Actual overhead-Budgeted overhead
=$3761600-$3862400=$100800 favourable.
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