Required information The following information applies to the questions displaye

Question

Required information 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. $5.50 per Ib.) Direct labor (7 hrs. e $14 per hr.) Factory overhead-variable (7 hrs.$6 per hr.) Factory overhead-fixed (7 hr. $12 per hr.) Total standard cost $165.00 98.00 42.00 84.00 $389.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 62,000 units per quarter. The following flexible budget information is available. Operating Levels 80% 70% 43,400 908 55,800 49,600 Production in units Standard direct labor hours Budgeted overhead 303,800 347,200 390,600 Fixed factory overhead variable factory overhead $4,166,400 $4,166,400 $4,166,400 During the current quarter, the company operated at 90% of capacity and produced 55,800 units of product, actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs Direct materials (1,674,000 Ibs. $.50 per Ib.) Direct labor (390,600 hrs. $14 per hr.) Factory overhead (390,600 hrs. $18 per hr.) 7,030 800 Total standard cost 9,207,000 5,468,400 $21,706,200 K Prev 4 of 4 Next

Explanation / Answer

Answer 1. Actual Direct Material Flexible Budget Standard Cost AQ AR Total AQ SR Total SQ SR Total          1,658,000           7.60        12,600,800          1,658,000                 5.50          9,119,000          1,674,000           5.50          9,207,000    3,481,800.00            88,000.00 Direct Material Price Variance    3,481,800.00 (U) Direct Material Quantity Variance          88,000.00 (F) Total Direct Material Variance    3,393,800.00 (U) Answer 2. Actual Direct Labor Flexible Budget Standard Cost AH AR Total AH SR Total SH SR Total              386,600         12.00          4,639,200              386,600              14.00          5,412,400              390,600         14.00          5,468,400        773,200.00            56,000.00 Direct Labor RAte Variance        773,200.00 (F) Direct Labor Efficiency Variance          56,000.00 (F) Total Direct Labor Variance        829,200.00 (F) Answer 3. Actual Overhead    6,430,800.00 Budgeted Overhead    7,030,800.00 Controllable Variance        600,000.00 (F) Answer 4. Budgeted Fixed Overhead    4,166,400.00 Fixed Overhead Cost Applied    4,639,200.00 Fixed Overhead Volume Variance        472,800.00 (F)

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