Question

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. Direct materials (30 lbs. @ $4.80 per Ib.) Direct labor (8 hrs. @ $16 per hr.) Factory overhead-variable (8 hrs. @ $9 per hr.) Factory overhead-fixed (8 hrs. @ $12 per hr.) Total standard cost $ 144.00 128.00 72.00 96.00 $ 440.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 59,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 41,300 47,200 330,400 377,600 90% 53,100 424,800 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $4,531,200 $4,531,200 $4,531,200 $ 2,973,600 $3,398,400 $3,823,200 During the current quarter, the company operated at 90% of capacity and produced 53,100 units of product, actual direct labor totaled 420,800 hours. Units produced were assigned the following standard costs. Direct materials (1,593,000 lbs. @ $4.80 per Ib.) Direct labor (424,800 hrs. @ $16 per hr.) Factory overhead (424,800 hrs. @ $21 per hr.) Total standard cost $ 7,646,400 6,796,800 8,920,800 $ 23,364,000 Actual costs incurred during the current quarter follow. Direct materials (1,582,000 lbs. @ $5.90 per lb.) Direct labor (420,800 hrs. @ $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 9,333,800 5,260,000 4,297,600 4,023,200 $22,914,600

Answer 1

Solution 3:

Controllable Variance
Actual overhead	$8,320,800.00
Budgeted overhead	$8,354,400.00
Controllable variance	$33,600.00	F

Fixed overhead volume variance
Budgeted fixed overhead	$4,531,200.00
Fixed overhead cost applied	$5,097,600.00
Fixed overhead volume variance	$566,400.00	F