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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 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 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following standard costs. Direct materials (1,350,000 pounds @ $4.40 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours @ $19 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,333,000 pounds @ $6.20 per pound) Direct labor (266,000 hours @ $12.50 per hour). Fixed overhead Variable overhead Actual cost $ 5,940,000 3,780,000 5,130,000 $ 14,850,000 $ 8,264,600 3,325,000 2,443,000 2,287,000 $ 16,319,600 Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance $ 0 Actual quantity X Standard price X $ 0 0 $ 0 Standard Cost Standard quantity X Standard price. X

Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 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 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following standard costs. Direct materials (1,350,000 pounds @ $4.40 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours @ $19 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,333,000 pounds @ $6.20 per pound) Direct labor (266,000 hours @ $12.50 per hour). Fixed overhead Variable overhead Actual cost $ 5,940,000 3,780,000 5,130,000 $ 14,850,000 $ 8,264,600 3,325,000 2,443,000 2,287,000 $ 16,319,600 Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance $ 0 Actual quantity X Standard price X $ 0 0 $ 0 Standard Cost Standard quantity X Standard price. X

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 @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 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 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following standard costs. Direct materials (1,350,000 pounds @ $4.40 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours @ $19 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,333,000 pounds @ $6.20 per pound) Direct labor (266,000 hours @ $12.50 per hour). Fixed overhead Variable overhead Actual cost $ 5,940,000 3,780,000 5,130,000 $ 14,850,000 $ 8,264,600 3,325,000 2,443,000 2,287,000 $ 16,319,600
Transcribed Image Text:Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 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 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following standard costs. Direct materials (1,350,000 pounds @ $4.40 per pound) Direct labor (270,000 hours @ $14 per hour) Overhead (270,000 hours @ $19 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,333,000 pounds @ $6.20 per pound) Direct labor (266,000 hours @ $12.50 per hour). Fixed overhead Variable overhead Actual cost $ 5,940,000 3,780,000 5,130,000 $ 14,850,000 $ 8,264,600 3,325,000 2,443,000 2,287,000 $ 16,319,600
Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance $ 0 Actual quantity X Standard price X $ 0 0 $ 0 Standard Cost Standard quantity X Standard price. X
Transcribed Image Text:Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance $ 0 Actual quantity X Standard price X $ 0 0 $ 0 Standard Cost Standard quantity X Standard price. X
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