Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places. Actual Cost Actual hours Direct labor rate variance X X Direct labor efficiency variance Direct labor variance Actual rate. $ 0 Actual hours X Standard rate X 0 0 $ 0 Standard Cost Standard hours X Standard rate 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 labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places. Actual Cost Actual hours Direct labor rate variance X X Direct labor efficiency variance Direct labor variance Actual rate. $ 0 Actual hours X Standard rate X 0 0 $ 0 Standard Cost Standard hours X Standard rate X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
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 labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places. Actual Cost Actual hours Direct labor rate variance X X Direct labor efficiency variance Direct labor variance Actual rate. $ 0 Actual hours X Standard rate X 0 0 $ 0 Standard Cost Standard hours X Standard rate X
Transcribed Image Text:Compute the direct labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places. Actual Cost Actual hours Direct labor rate variance X X Direct labor efficiency variance Direct labor variance Actual rate. $ 0 Actual hours X Standard rate X 0 0 $ 0 Standard Cost Standard hours X Standard rate X
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS