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

Direct materials (26 Ibs. @ $3.00 per Ib.)	$	78.00
Direct labor (6 hrs. @ $6.00 per hr.)		36.00
Factory overheadvariable (6 hrs. @ $4.00 per hr.)		24.00
Factory overheadfixed (6 hrs. @ $5.00 per hr.)		30.00
Total standard cost	$	168.00

The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		50%		60%		70%
Production in units		25,000		30,000		35,000
Standard direct labor hours		150,000		180,000		210,000
Budgeted overhead
Fixed factory overhead	$	900,000	$	900,000	$	900,000
Variable factory overhead	$	600,000	$	720,000	$	840,000

During the current quarter, the company operated at 70% of capacity and produced 35,000 units of product; actual direct labor totaled 204,000 hours. Units produced were assigned the following standard costs:

Direct materials (910,000 Ibs. @ $3.00 per Ib.)	$	2,730,000
Direct labor (210,000 hrs. @ $6.00 per hr.)		1,260,000
Factory overhead (210,000 hrs. @ $9.00 per hr.)		1,890,000
Total standard cost	$	5,880,000

Actual costs incurred during the current quarter follow:

Direct materials (905,000 Ibs. @ $3.10)	$	2,805,500
Direct labor (204,000 hrs. @ $5.75)		1,173,000
Fixed factory overhead costs		1,809,057
Variable factory overhead costs		1,693,585
Total actual costs	$	7,481,142

rev: 01_19_2015_QC_CS-3499

References

Section BreakProblem 23-1A Computation of materials, labor, and overhead variances LO P2, P3

44.

value: 5.00 points

Required information

Problem 23-1A Part 1

Required:
1.	Compute the direct materials cost variance, including its price and quantity variances.(Round actual price to 2 decimal places.)

References

eBook & Resources

Expanded tableDifficulty: HardLearning Objective: 23-P3 Compute overhead variances.

Problem 23-1A Part 1Learning Objective: 23-P2 Compute materials and labor variances.

45.

value: 5.00 points

Required information

Problem 23-1A Part 2

2.	Compute the direct labor variance, including its rate and efficiency variances.(Round actual rate to 2 decimal places.)

References

eBook & Resources

Expanded tableDifficulty: HardLearning Objective: 23-P3 Compute overhead variances.

Problem 23-1A Part 2Learning Objective: 23-P2 Compute materials and labor variances.

46.

value: 5.00 points

Required information

Problem 23-1A Part 3

3.	Compute the overhead controllable and volume variances.

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