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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound)$ 132.00Direct labor (6 hours @ $14 per hour)84.00 Variable overhead (6 hours @ $8 per hour)48.00 Fixed overhead (6 hours @ $12 per hour)72.00Standard cost per unit$ 336.00 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 69,000 units per quarter. The following additional information is available. Operating Levels 70 % 80% 90% Production (in units)48, 30055, 20062, 100Standard direct labor hours (6 DLH per unit)289,800331, 200372, 600Budgeted overhead (flexible budget) Fixed overhead$ 3,974,400$ 3,974,400$ 3,974,400 Variable overhead$ 2,318,400$ 2,649,600$ 2,980,800 During the current quarter, the company operated at 90% of capacity and produced 62,100 units; actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. Direct materials (1,863,000 pounds @ $4.40 per pound)$ 8,197,200Direct labor (372,600 hours @ $14 per hour)5,216,400Overhead (372,600 hours @ $20 per hour)7,452,000Standard (budgeted) cost$ 20,865,600 Actual costs incurred during the current quarter follow. Direct materials (1,466,000 pounds @ $7.40 per pound)$ 10,848,400Direct labor (291,000 hours @ $12.60 per hour)3,666, 600Fixed overhead3,014,600 Variable overhead3, 272, 200Actual cost$ 20,801,800 Required: Compute the direct materials variance, including its price and quantity variances. Compute the direct labor variance, including its rate and efficiency variances. Compute the overhead controllable and volume variances.

Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound)$ 132.00Direct labor (6 hours @ $14 per hour)84.00 Variable overhead (6 hours @ $8 per hour)48.00 Fixed overhead (6 hours @ $12 per hour)72.00Standard cost per unit$ 336.00 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 69,000 units per quarter. The following additional information is available. Operating Levels 70 % 80% 90% Production (in units)48, 30055, 20062, 100Standard direct labor hours (6 DLH per unit)289,800331, 200372, 600Budgeted overhead (flexible budget) Fixed overhead$ 3,974,400$ 3,974,400$ 3,974,400 Variable overhead$ 2,318,400$ 2,649,600$ 2,980,800 During the current quarter, the company operated at 90% of capacity and produced 62,100 units; actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. Direct materials (1,863,000 pounds @ $4.40 per pound)$ 8,197,200Direct labor (372,600 hours @ $14 per hour)5,216,400Overhead (372,600 hours @ $20 per hour)7,452,000Standard (budgeted) cost$ 20,865,600 Actual costs incurred during the current quarter follow. Direct materials (1,466,000 pounds @ $7.40 per pound)$ 10,848,400Direct labor (291,000 hours @ $12.60 per hour)3,666, 600Fixed overhead3,014,600 Variable overhead3, 272, 200Actual cost$ 20,801,800 Required: Compute the direct materials variance, including its price and quantity variances. Compute the direct labor variance, including its rate and efficiency variances. Compute the overhead controllable and volume variances.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound)$ 132.00Direct labor (6 hours @ $14 per hour)84.00 Variable overhead (6 hours @ $8 per hour)48.00 Fixed overhead (6 hours @ $12 per hour)72.00Standard cost per unit$ 336.00 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 69,000 units per quarter. The following additional information is available. Operating Levels 70 % 80% 90% Production (in units)48, 30055, 20062, 100Standard direct labor hours (6 DLH per unit)289,800331, 200372, 600Budgeted overhead (flexible budget) Fixed overhead$ 3,974,400$ 3,974,400$ 3,974,400 Variable overhead$ 2,318,400$ 2,649,600$ 2,980,800 During the current quarter, the company operated at 90% of capacity and produced 62,100 units; actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. Direct materials (1,863,000 pounds @ $4.40 per pound)$ 8,197,200Direct labor (372,600 hours @ $14 per hour)5,216,400Overhead (372,600 hours @ $20 per hour)7,452,000Standard (budgeted) cost$ 20,865,600 Actual costs incurred during the current quarter follow. Direct materials (1,466,000 pounds @ $7.40 per pound)$ 10,848,400Direct labor (291,000 hours @ $12.60 per hour)3,666, 600Fixed overhead3,014,600 Variable overhead3, 272, 200Actual cost$ 20,801,800 Required: Compute the direct materials variance, including its price and quantity variances. Compute the direct labor variance, including its rate and efficiency variances. Compute the overhead controllable and volume variances.
Transcribed Image Text:Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound)$ 132.00Direct labor (6 hours @ $14 per hour)84.00 Variable overhead (6 hours @ $8 per hour)48.00 Fixed overhead (6 hours @ $12 per hour)72.00Standard cost per unit$ 336.00 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 69,000 units per quarter. The following additional information is available. Operating Levels 70 % 80% 90% Production (in units)48, 30055, 20062, 100Standard direct labor hours (6 DLH per unit)289,800331, 200372, 600Budgeted overhead (flexible budget) Fixed overhead$ 3,974,400$ 3,974,400$ 3,974,400 Variable overhead$ 2,318,400$ 2,649,600$ 2,980,800 During the current quarter, the company operated at 90% of capacity and produced 62,100 units; actual direct labor totaled 291,000 hours. Units produced were assigned the following standard costs. Direct materials (1,863,000 pounds @ $4.40 per pound)$ 8,197,200Direct labor (372,600 hours @ $14 per hour)5,216,400Overhead (372,600 hours @ $20 per hour)7,452,000Standard (budgeted) cost$ 20,865,600 Actual costs incurred during the current quarter follow. Direct materials (1,466,000 pounds @ $7.40 per pound)$ 10,848,400Direct labor (291,000 hours @ $12.60 per hour)3,666, 600Fixed overhead3,014,600 Variable overhead3, 272, 200Actual cost$ 20,801,800 Required: Compute the direct materials variance, including its price and quantity variances. Compute the direct labor variance, including its rate and efficiency variances. Compute the overhead controllable and volume variances.
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