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Trini Company set the following standard costs per unit for its single product Direct 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 unit 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 165.00 98.00 42.00 84.00 $ 389.00 43,400 303,800 $ 4,166,400 $ 1,822,800 Direct materials (1,674,800 pounds @ $5.50 per pound) Direct labor (398,680 hours Overhead (390, 608 hours $14 per hour) $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,809 pounds @ $7.60 per pound) Direct labor (386,600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 885 49,600 347, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 4,166, 400 $ 4,166,400 $ 2,883, 298 $ 2,343, 600 $ 9,207,000 5,468,480 7,839,896 $ 21,706,290 55,800 390, 600 $ 12,680, 808 4,639,209 3,321, 408 3,189,408 $ 23,670, 808 ired: impute the direct materials variance, including its price and quantity variances. ompute the direct labor variance, including its rate and efficiency variances. ompute the overhead controllable and volume variances.

Trini Company set the following standard costs per unit for its single product Direct 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 unit 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 165.00 98.00 42.00 84.00 $ 389.00 43,400 303,800 $ 4,166,400 $ 1,822,800 Direct materials (1,674,800 pounds @ $5.50 per pound) Direct labor (398,680 hours Overhead (390, 608 hours $14 per hour) $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,809 pounds @ $7.60 per pound) Direct labor (386,600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 885 49,600 347, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 4,166, 400 $ 4,166,400 $ 2,883, 298 $ 2,343, 600 $ 9,207,000 5,468,480 7,839,896 $ 21,706,290 55,800 390, 600 $ 12,680, 808 4,639,209 3,321, 408 3,189,408 $ 23,670, 808 ired: impute the direct materials variance, including its price and quantity variances. ompute the direct labor variance, including its rate and efficiency variances. ompute the overhead controllable and volume variances.

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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Trini Company set the following standard costs per unit for its single product Direct 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 unit 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Direct materials (1,674,800 pounds @ $5.50 per pound) Direct labor (398,680 hours @ $14 per hour) Overhead (390, 608 hours $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,800 pounds @ $7.60 per pound) Direct labor (386,680 hours $12.00 per hour) Fixed overhead Variable overhead Actual cost $ 165.00 98.86 42.80 84.90 389.80 43, 400 383, 800 Req 1 $ 4,166,400 $ 1,822, 800 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. Complete this question by entering your answers in the tabs below. Req 92 Actual Cost 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. Req 3 Volume Variance 88% 49,600 347, 200 $ 4, 166, 408 $ 2,883, 298 $ 9,207,086 5,468,480 7,838, 880 $ 21,705, 286 Req 3 Controllable Variance Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Standard Cost $ 12, 680, 808 4,639,208 3,321, 408 3,189, 408 $ 23,670, 808 98% 55,896 390, 600 $ 4, 166, 400 $ 2,343, 600
Transcribed Image Text:Trini Company set the following standard costs per unit for its single product Direct 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 unit 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Direct materials (1,674,800 pounds @ $5.50 per pound) Direct labor (398,680 hours @ $14 per hour) Overhead (390, 608 hours $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,800 pounds @ $7.60 per pound) Direct labor (386,680 hours $12.00 per hour) Fixed overhead Variable overhead Actual cost $ 165.00 98.86 42.80 84.90 389.80 43, 400 383, 800 Req 1 $ 4,166,400 $ 1,822, 800 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. Complete this question by entering your answers in the tabs below. Req 92 Actual Cost 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. Req 3 Volume Variance 88% 49,600 347, 200 $ 4, 166, 408 $ 2,883, 298 $ 9,207,086 5,468,480 7,838, 880 $ 21,705, 286 Req 3 Controllable Variance Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Standard Cost $ 12, 680, 808 4,639,208 3,321, 408 3,189, 408 $ 23,670, 808 98% 55,896 390, 600 $ 4, 166, 400 $ 2,343, 600
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