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Required information 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 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% a the company's capacity of 51,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 $ 2,570,400 $ 1,749,300 Operating Levels 80% 40,800 285,600 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 $ 2,570,400 $ 1,999,200 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 90% 45,900 321,300 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500 $ 2,570,400 $2,249,100 Problem 23-4A (Algo) Computing materials, labor, and overhead variances LO P3, P4

Required information 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 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% a the company's capacity of 51,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 $ 2,570,400 $ 1,749,300 Operating Levels 80% 40,800 285,600 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 $ 2,570,400 $ 1,999,200 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 90% 45,900 321,300 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500 $ 2,570,400 $2,249,100 Problem 23-4A (Algo) Computing materials, labor, and overhead variances LO P3, P4

FINANCIAL ACCOUNTING
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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--- ### Required Information Actual costs incurred during the current quarter are as follows: - **Direct materials:** 1,350,000 pounds at $7.00 per pound - **Direct labor:** 317,800 hours at $11.00 per hour - **Fixed overhead** - **Variable overhead** - **Actual cost** ### Problem 23-4A (Algo) Computing Materials, Labor, and Overhead Variances **Required:** 1. Compute the direct materials variance, including its price and quantity variances. 2. Compute the direct labor variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances. **Instructions:** Complete this question by entering your answers in the tabs below: - **Req 1** - **Req 2** - **Req 3 Controllable Variance** - **Req 3 Volume Variance** --- ### Volume Variance Details **Compute the overhead volume variances.** **Note:** Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. #### Volume Variance Table - **Budgeted total overhead:** [Input Box] - **Standard overhead applied:** [Input Box] - **Volume variance:** [Highlighted Input Box] --- Please refer to the provided displays and input areas to enter calculated values and determine variances effectively.
Transcribed Image Text:--- ### Required Information Actual costs incurred during the current quarter are as follows: - **Direct materials:** 1,350,000 pounds at $7.00 per pound - **Direct labor:** 317,800 hours at $11.00 per hour - **Fixed overhead** - **Variable overhead** - **Actual cost** ### Problem 23-4A (Algo) Computing Materials, Labor, and Overhead Variances **Required:** 1. Compute the direct materials variance, including its price and quantity variances. 2. Compute the direct labor variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances. **Instructions:** Complete this question by entering your answers in the tabs below: - **Req 1** - **Req 2** - **Req 3 Controllable Variance** - **Req 3 Volume Variance** --- ### Volume Variance Details **Compute the overhead volume variances.** **Note:** Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. #### Volume Variance Table - **Budgeted total overhead:** [Input Box] - **Standard overhead applied:** [Input Box] - **Volume variance:** [Highlighted Input Box] --- Please refer to the provided displays and input areas to enter calculated values and determine variances effectively.
### Required Information #### Use the following information for the Problems below. (Algo) **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**: $360.00 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: #### Operating Levels | | 70% | 80% | 90% | |--------|---------|---------|---------| | Production (in 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) | $2,579,400 | $2,570,400 | $2,570,400 | | Fixed 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.
Transcribed Image Text:### Required Information #### Use the following information for the Problems below. (Algo) **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**: $360.00 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: #### Operating Levels | | 70% | 80% | 90% | |--------|---------|---------|---------| | Production (in 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) | $2,579,400 | $2,570,400 | $2,570,400 | | Fixed 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.
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