Question

The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product Direct materials (29 lbs. $3 per lb.) Direct labor (6 hrs. $6 per hr.) Factory overhead-variable 16 hrs. S4 per hr.) Factory overhead-foed (6 hrs. $5 per hr.) S 87.00 36.00 24.00 30.00 Total Standard cost S 177.00 The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 70,000 units per quarter. The following flexible budget information is available. Operating Levels 60% 42.000 252.000 70% 49.000 294,000 80% 56.000 336,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $ 1,470,000 $ 1,008,000 $ 1,470,000 $1176,000 $ 1,470,000 $1,344,000 During the current quarter, the company operated at 80% of capacity and produced 56,000 units of product: actual direct labor totaled 333,000 hours. Units produced were assigned the following standard costs: Direct materials (1.624,000 lbs. $3 per lb.) Direct labor (336,000 hrs. $6 per hr.) Factory overhead (336,000 hrs. $9 per hr.) $ 4,872.000 2,016,000 3,024,000 Total standard cost $ 9,912,000 Actual costs incurred during the current quarter follow. $ Direct materials (1.619.000 lbs. $3.10 per lib.) Direct labor (333,000 hrs. $5.75 per hr.) Fixed factory overhead costs Variable factory overhead costs 5,018.900 1.914750 2.953,019 2,764,528 Total actual costs $ 12,651,197

PLease organize exactly as seen, I get confused very easily, thank you so much!

Answer 1

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As required #1 & #2: Answers are highlighted in yellow. Naming convention in drop down is not available, can be slightly different: Solution: Direct Material: Actual Cost AQXAP 1619000 X $ 3.10 5018900 AQT X 1619000 4857000 SP 3.00 SQ 1624000 Standard Cost X SP X $ 3.00 4872000 $ 161900 $ 15,000 Material price variance (SP-AP)*Actual Hours. Material Quantity variance (SQ-AQ)*Standard Rate Total Material Variance 161900 Unfavorable 15000 Favorable 146900 Unfavorable 2) Direct Labor: Actual Cost AH X 333000 X 1914750 AR $ 5.75 AHTX 333000 1998000 SR 6.00 $ Standard Cost SHX SR 336000 X $ 6.00 2016000 83250 18000 Labor price variance (SR - AR) *Actual Hours. Labor efficiency variance (SH-AH)*Standard Rate Total Labor Variance 83250 Favorable 18000 Favorable 101250 Favorable

Main Answers are highlighted in yellow: 3) Overhead Controllable Variance: Actual overhead Budgeted Overhead Controllable Variance Controllable Variance (2953019+2764528) (1470000+1344000) 5717547 2814000 2903547 Unfavorable Fixed Overhead Volume Variance Budgeted Fixed Overhead Fixed Overhead Cost applied (336000*5) Fixed Overehad Volume variance 1470000 1680000 210000 Favorable