The following information applies to the questions displayed
below.]
Trico Company set the following standard unit costs for its single
product.
Direct materials (30 Ibs. @ $5.00 per Ib.) | $ | 150.00 |
Direct labor (7 hrs. @ $14 per hr.) | 98.00 | |
Factory overhead—variable (7 hrs. @ $7 per hr.) | 49.00 | |
Factory overhead—fixed (7 hrs. @ $9 per hr.) | 63.00 | |
Total standard cost | $ | 360.00 |
The predetermined overhead rate is based on a planned operating
volume of 80% of the productive capacity of 61,000 units per
quarter. The following flexible budget information is
available.
Operating Levels | ||||||
70% | 80% | 90% | ||||
Production in units | 42,700 | 48,800 | 54,900 | |||
Standard direct labor hours | 298,900 | 341,600 | 384,300 | |||
Budgeted overhead | ||||||
Fixed factory overhead | $ | 3,074,400 | $ | 3,074,400 | $ | 3,074,400 |
Variable factory overhead | $ | 2,092,300 | $ | 2,391,200 | $ | 2,690,100 |
During the current quarter, the company operated at 90% of capacity
and produced 54,900 units of product; actual direct labor totaled
316,300 hours. Units produced were assigned the following standard
costs.
Direct materials (1,647,000 Ibs. @ $5.00 per Ib.) | $ | 8,235,000 |
Direct labor (384,300 hrs. @ $14 per hr.) | 5,380,200 | |
Factory overhead (384,300 hrs. @ $16 per hr.) | 6,148,800 | |
Total standard cost | $ | 19,764,000 |
Actual costs incurred during the current quarter follow.
Direct materials (1,364,000 Ibs. @ $7.80 per lb.) | $ | 10,639,200 |
Direct labor (316,300 hrs. @ $11.10 per hr.) | 3,510,930 | |
Fixed factory overhead costs | 2,348,400 | |
Variable factory overhead costs | 2,742,200 | |
Total actual costs | $ | 19,240,730 |
a) Compute the variable overhead spending and
efficiency variances. (Round "cost per unit" and "rate per
hour" answers to 2 decimal places.)
AH = Actual Hours
SH = Standard Hours
AVR = Actual Variable Rate
SVR = Standard Variable Rate
|
(b) Compute the fixed overhead spending and volume
variances. (Round "cost per unit" and "rate per hour"
answers to 2 decimal places.)
AH = Actual Hours
SH = Standard Hours
AFR = Actual Fixed Rate
SFR = Standard Fixed Rate
Actual Variable OH Cost | Flexible Budget | Standard Cost (VOH applied) | ||||||||
0 | ||||||||||
-1 | ||||||||||
$0 | ||||||||||
0 | ||||||||||
(c) Compute the total overhead controllable variance.
Solution a:
Variable Overhead Cost Variance | ||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||
AH* | AR = | AH* | SR = | SH * | SR = | |||||
316300 | $8.67 | $2,742,200.00 | 316300 | $7.00 | $2,214,100.00 | 384300 | $7.00 | $2,690,100.00 | ||
$528,100 U | $476,000 F | |||||||||
Variable overhead rate Variance | Variable overhead efficiency variance |
Variable overhead spending variance = $528,100 U
Variable overhead efficiency variance = $476,000 F
Solution b:
Budgeted fixed overhead = 48800*7*$9 = $3,074,400
Actual fixed overhead = $2,348,400
Fixed overhead applied = Standard hours for actual production * SR = 54900*7*$9 = $3,458,700
Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead
= $3,074,400 - $2,348,400 = $726,000 F
Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
= $3,458,700 - $3,074,400 = $384,300 F
Solution c:
Overhead controllable variance = Variable overhead spending variance + Variable overhead efficiency variance + Fixed overhead spending variance
= $528,100 U + $476,000 F + $726,000 F = $673,900 F
The following information applies to the questions displayed below.] Trico Company set the following standard unit...
Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.00 per Ib.) $ 150.00 Direct labor (7 hrs. @ $14 per hr.) 98.00 Factory overhead—variable (7 hrs. @ $7 per hr.) 49.00 Factory overhead—fixed (7 hrs. @ $9 per hr.) 63.00 Total standard cost $ 360.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 61,000 units per quarter. The following flexible budget...
[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00 Direct labor (4 hrs. @ $15 per hr.) 60.00 Factory overhead—variable (4 hrs. @ $6 per hr.) 24.00 Factory overhead—fixed (4 hrs. @ $11 per hr.) 44.00 Total standard cost $ 281.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity...
[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) Direct labor (8 hrs. @ $15 per hr.) Factory overhead-variable (8 hrs. @ $6 per hr.) Factory overhead-fixed (8 hrs. @ $9 per hr.) Total standard cost $153.00 120.00 48.00 72.00 $393.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 65,000...
[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00 Direct labor (8 hrs. @ $14 per hr.) 112.00 Factory overhead—variable (8 hrs. @ $6 per hr.) 48.00 Factory overhead—fixed (8 hrs. @ $12 per hr.) 96.00 Total standard cost $ 409.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity...
Required information The following information applies to the questions displayed below] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $4.80 per 1b.) Direct labor (6 hrs. e $14 per hr.) Factory overhead-variable (6 hrs.e $7 per hr.) Factory overhead-fixed (6 hrs. e $12 per hr.) $144.00 84.00 42.00 72.00 Total standard cost $342.00 The predetermined overhead rate is based on a planned operating volume of 80 % of the productive capacity of...
Need help with the following accounting problem. 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 Ibs. @ $5.00 per Ib.) Direct labor (7 hrs. @ $14 per hr.) Factory overhead-variable (7 hrs. @ $7 per hr.) Factory overhead-fixed (7 hrs. @ $9 per hr.) Total standard cost $150.00 98.00 49.00 63.00 $360.00 The predetermined...
Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4.80 per Ib.) Direct labor (7 hrs. @ $14 per hr.) Factory overhead-Variable (7 hrs. @ $6 per hr.) Factory overhead-Fixed (7 hrs. @ $9 per hr.) Total standard cost $144.00 98.00 42.00 63.00 $347.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 67,000 units per quarter. The following flexible budget information is...
please assist with the information provided: Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4.40 per Ib.) Direct labor (6 ha. @ $14 per hr.) Factory overhead-variable (6 hrs. @ $8 per hr.) Factory overhead-fixed 16 hrs. @ $11 per hr.) Total standard cost $132.00 84.00 48.00 66.00 $330.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter....
Need help with the following accounting problem. 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 Ibs. @ $5.00 per Ib.) Direct labor (7 hrs. @ $14 per hr.) Factory overhead-variable (7 hrs. @ $7 per hr.) Factory overhead-fixed (7 hrs. @ $9 per hr.) Total standard cost $150.00 98.00 49.00 63.00 $360.00 The predetermined...
Trico Company set the following standard unit costs for its single product. Direct materials (29 Ibs. @ $3 per Ib.) $ 87.00 Direct labor (6 hrs. @ $6 per hr.) 36.00 Factory overhead—variable (6 hrs. @ $4 per hr.) 24.00 Factory overhead—fixed (6 hrs. @ $5 per hr.) 30.00 Total standard cost $ 177.00 The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 60,000 units per quarter. The...