Question 6 Required part 2 **Standard Cost Information**Trini Company set the following standard costs per unit for its single product:- **Direct Materials:** 30 pounds @ $5.00 per pound = $150.00- **Direct Labor:** 7 hours @ $14 per hour = $98.00- **Variable Overhead:** 7 hours @ $7 per hour = $49.00- **Fixed Overhead:** 7 hours @ $9 per hour = $63.00**Standard Cost per Unit** = $360.00Overhead 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 51,000 units per quarter. The following additional information is available.**Operating Levels:**| | 70% | 80% | 90% ||-------------------|----------|----------|----------|| Production (units)| 35,700 | 40,800 | 45,900 || Standard Direct Labor Hours (7 DLH per unit)| 249,900 | 285,600 | 321,300 || Budgeted Overhead (flexible budget) | | | || - **Fixed Overhead** | $2,570,400| $2,570,400| $2,570,400|| - **Variable Overhead**| $1,749,300| $1,999,200| $2,249,100|During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs:- **Direct Materials:** 1,377,000 pounds @ $5.00 per pound = $6,885,000- **Direct Labor:** 321,300 hours @ $14 per hour = $4,498,200- **Overhead:** 321,300 hours @ $16 per hour = $5,140,800**Standard (Budgeted) Cost** = $16,524,000**Actual Costs Incurred During the Current Quarter:**- **Direct Materials:** 1,358,000 pounds @ $7.80 per pound = $10,592,400- **Direct Labor:** 317,300 hours @ $11.00 per hour The screen displays a question prompt for computing direct labor variance, specifically targeting rate and efficiency variances. It is part of an interactive exercise on an educational website, likely designed for students studying accounting or finance.### Instructions:- **Task:** Compute the direct labor variance, incorporating rate and efficiency variances.- **Rounding Instructions:** Round "Rate per hour" answers to two decimal places.- **Evaluation:** Indicate whether each variance is favorable, unfavorable, or has no variance.### Interface:- **Tabs for Entry:** - **Req 1, Req 2:** These are likely sequential entry requirements for calculating different aspects of labor variance. - **Req 3 Controllable Variance:** A separate entry point potentially focusing on variance that is within managerial control. - **Req 3 Volume Variance:** Likely examines variances related to volume differences.### Data Entry Fields:- **Cost Comparison:** - **Actual Cost Section:** Consists of cells split into rows and columns, though the majority are empty. - **Standard Cost Section:** Mirrors the Actual Cost section, also with mainly empty fields. - **Outlined Cells:** Highlighted with zero amounts, ready for user input or confirming existing data. ### Navigation:- **Page Position:** - Users can navigate through the set by clicking "Prev" or "Next", with the current page labeled "6 of 6".This setup guides the user to perform accurate variance calculations and understand the financial implications of direct labor costs.

The rate variance and efficiency variance are computed for the direct labor. The total direct labor…

omework Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Overhead 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 51,000 units per quarter. The following additional information is available. $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 $ 2,570,400 $ 1,749,300 Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,358,000 pounds @ $7.80 per pound) Direct labor (317,300 hours @ $11.00 per hour) Fixed overhead Variable overhead Actual cost Operating Levels 80% 40,800 285,600 $ 2,570,400 $ 1,999,200 Saved During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. $6,885,000 4,498,200 5,140,800 $ 16,524,000 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500 90% 45,900 321,300 $ 2,570,400 $ 2,249,100

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q