8.CWhat is the controllable variance? Trini Company set the following standard costs per unit for its single productDirect materials (30 pounds @ $5.50 per pound)Direct labor (7 hours @ $14 per hour)Variable overhead (7 hours @ $6 per hour)Fixed overhead (7 hours@ $12 per hour)Standard cost per unitOverhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80%of the company's capacity of 62,000 units per quarter. The following additional information is available.Operating LevelsProduction (in units)Standard direct labor hours (7 DLH/unit)Budgeted overhead (flexible budget)Fixed overheadVariable overhead$ 165.0098.0042.0084.00$ 389.0070%43,400303,800$ 4, 166,400$ 1,822, 800Direct materials (1,674, 000 pounds @ $5.50 per pound)Direct labor (390, 600 hours @ $14 per hour)Overhead (390, 600 hours @ $18 per hour)Standard (budgeted) costActual costs incurred during the current quarter follow.Direct materials (1,658, 000 pounds @ $7.60 per pound)Direct labor (386, 600 hours $12.00 per hour)Fixed overheadVariable overheadActual cost80%49,600347, 200Required:(a) Compute the variable overhead spending and efficiency variances.(b) Compute the fixed overhead spending and volume variances.(c) Compute the overhead controllable variance.$ 4, 166,400$ 2,083, 200During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labortotaled 386,600 hours. Units produced were assigned the following standard costs.$ 9,207,0005,468, 4007,030, 800$ 21, 706, 20090%55,800390, 600$ 12, 600, 8004,639, 2003,321, 4003,109, 400$ 23,670, 800$ 4,166,400$ 2,343, 600 Required A Required B Required CCompute the overhead controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or novariance.)Overhead Controllable VarianceVariable overhead spending varianceVariable overhead efficiency varianceFixed overhead spending varianceControllable variance$ 789,80024,000845,000UnfavorableFavorableFavorableFavorable

Name: 8.CWhat is the controllable variance? Trini Company set the following
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Description: 8.CWhat is the controllable variance? Trini Company set the following standard costs per unit for its single productDirect materials (30 pounds @ $5.50 per pound)Direct labor (7 hours @ $14 per hour)Variable overhead (7 hours @ $6 per hour)Fixed over

Answered: labor (7 hours @ $14 per hour) e…

Business

Accounting

labor (7 hours @ $14 per hour) e overhead (7 hours@ $6 per hour) verhead (7 hours @ $12 per hour). d cost per unit 98.00 42.00 84.00 $ 389.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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