70.2K

Verified Solution

Link Copied!

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. @ $4 per Ib.)	$	120.00
Direct labor (5 hrs. @ $14 per hr.)		70.00
Factory overheadvariable (5 hrs. @ $8 per hr.)		40.00
Factory overheadfixed (5 hrs. @ $10 per hr.)		50.00
Total standard cost	$	280.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		42,000		48,000		54,000
Standard direct labor hours		210,000		240,000		270,000
Budgeted overhead
Fixed factory overhead	$	2,400,000	$	2,400,000	$	2,400,000
Variable factory overhead	$	1,680,000	$	1,920,000	$	2,160,000

During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs.

Direct materials (1,620,000 Ibs. @ $4 per Ib.)	$	6,480,000
Direct labor (270,000 hrs. @ $14 per hr.)		3,780,000
Factory overhead (270,000 hrs. @ $18 per hr.)		4,860,000
Total standard cost	$	15,120,000

Actual costs incurred during the current quarter follow.

Direct materials (1,615,000 Ibs. @ $4.10 per lb.)	$	6,621,500
Direct labor (265,000 hrs. @ $13.75 per hr.)		3,643,750
Fixed factory overhead costs		2,350,000
Variable factory overhead costs		2,200,000
Total actual costs	$	14,815,250

Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3

Required: 1. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

UNIT 6 ACCOMPUSH-CHAPTER 20 Total ac Problem 21-4A Computation of materlals, labor, and overhead varlances LO P2, P3 Required: 1. Compute the direct msterials cont varlance, Including its price and quartity varances -Actual Quantty -Standard Quantty Actu tandard Price 2 Compute the direct labar coat variance, Including 't rate snd effic ency variances AH-Actual Hours AR Actusl Rate SR- Standard Rate 3. Compute the overinesd controllable snd velume variances. Fuad overhand cost appliod

Answer & Explanation Solved by verified expert

See Answer