Question

100 points Required information Use the following information for the Problems below. The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. eBook Direct materials (30 Ibs. $4.90 per Ib.) Direct labor (4 hrs. @ $16 per hr.) Factory overhead Variable (4 hrs. $6 per hr.) Factory overhead-Pixed (4 hrs. @ $10 per hr.) Total standard cost $147.00 64.00 24.00 40.00 $275.00 Print References The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 53,000 units per quarter. The following flexible budget information is available. Operating Levels 700 800 37,100 42,400 148,400 169,600 908 47,700 190,800 Production in units Standard direct labor hours Budgeted overhead Pixed factory overhead Variable factory overhead $1,696,000 $1,696,000 $1,696,000 $ 890,400 $1,017, 600 $1,144,800

Answer 1

Solution 1:

Direct Material Cost Variance
Actual Cost					Standard cost for actual quantity					Standard Cost
AQ *	AP =				AQ *	SP =				SQ *	SP =
1412000	$7.70	$10,872,400.00			1412000	$4.90	$6,918,800.00			1431000	$4.90	$7,011,900.00
			$3,953,600.00	U				$93,100.00	F
			Direct Material Price Variance					Direct Material Qty variance
Direct material price variance					$3,953,600.00	U
Direct material quantity variance					$93,100.00	F
Direct material cost variance					$3,860,500.00	U

Solution 2:

Direct Labor Cost Variance
Actual Cost					Standard cost for actual quantity					Standard Cost
AH *	AR =				AH *	SR =				SH *	SR =
185800	$11.00	$2,043,800.00			185800	$16.00	$2,972,800.00			190800	$16.00	$3,052,800.00
			$929,000.00	F				$80,000.00	F
			Direct Labor rate Variance					Direct Labor Efficiency Variance
Direct Labor Rate variance					$929,000.00	F
Direct Labor Efficiency variance					$80,000.00	F
Direct labor cost variance					$1,009,000.00	F

Solution 3a:

Controllable Variance
Actual overhead	$2,601,200.00
Budgeted overhead	$2,840,800.00
Controllable variance	$239,600.00	F

Solution 3b:

Fixed overhead volume variance
Budgeted fixed overhead	$1,696,000.00
Fixed overhead cost applied	$1,908,000.00
Fixed overhead volume variance	$212,000.00	F