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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct materials (1,333,000 lbs. @ $6.20 per lb.)
Direct labor (266,000 hrs. @ $12.50 per hr.)
Fixed factory overhead costs
Variable factory overhead costs.
Total actual costs
Required:
1. Compute the direct materials cost variance, including its price and quantity variances.
2. Compute the direct labor cost variance, including its rate and efficiency variances.
3. Compute the overhead controllable and volume variances.
Complete this question by entering your answers in the tabs below.
Req 3
Controllable
Variance
Req 1
Reg 2
Rea 4 Volume
Variance
Actual Cost
$ 8,264,600
3,325,000
2,443,000
2,287,000
$16,319,600
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Standard Cost
![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. @ $4.40 per Ib.)
Direct labor (6 hrs. @ $14 per hr.)
Factory overhead-Variable (6 hrs. @ $8 per hr.)
Factory overhead-Fixed (6 hrs. @ $11 per hr.)
Total standard cost
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 50,000
units per quarter. The following flexible budget information is available.
Operating Levels
Production in units
Standard direct labor hours
Budgeted overhead
Fixed factory overhead
Variable factory overhead
$132.00
84.00
48.00
66.00
$330.00
70%
80%
35,000
40,000
210,000 240,000
$2,640,000 $2,640,000 $2,640,000
$1,680,000 $1,920,000 $2,160,000
Direct materials (1,350,000 Ibs. @ $4.40 per Ib.)
Direct labor (270,000 hrs. @ $14 per hr.)
Factory overhead (270,000 hrs. @ $19 per hr.)
Total standard cost
90%
45,000
270,000
During the current quarter, the company operated at 90% of capacity and produced 45,000 units of product; actual direct
labor totaled 266,000 hours. Units produced were assigned the following standard costs!
Actual costs incurred during the current quarter follow.
$5,940,000
3,780,000
5,130,000
$14,850,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd18f1c4-10cc-43e7-a89d-e15d577e7ca9%2F67ba040f-9f06-44ca-8cb5-aefe296cae87%2Ff3tu49_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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. @ $4.40 per Ib.)
Direct labor (6 hrs. @ $14 per hr.)
Factory overhead-Variable (6 hrs. @ $8 per hr.)
Factory overhead-Fixed (6 hrs. @ $11 per hr.)
Total standard cost
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 50,000
units per quarter. The following flexible budget information is available.
Operating Levels
Production in units
Standard direct labor hours
Budgeted overhead
Fixed factory overhead
Variable factory overhead
$132.00
84.00
48.00
66.00
$330.00
70%
80%
35,000
40,000
210,000 240,000
$2,640,000 $2,640,000 $2,640,000
$1,680,000 $1,920,000 $2,160,000
Direct materials (1,350,000 Ibs. @ $4.40 per Ib.)
Direct labor (270,000 hrs. @ $14 per hr.)
Factory overhead (270,000 hrs. @ $19 per hr.)
Total standard cost
90%
45,000
270,000
During the current quarter, the company operated at 90% of capacity and produced 45,000 units of product; actual direct
labor totaled 266,000 hours. Units produced were assigned the following standard costs!
Actual costs incurred during the current quarter follow.
$5,940,000
3,780,000
5,130,000
$14,850,000
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