Question: Please help me with this, everything is undone, please check and fix/add. Thank you very much! Trico Company set the following standard unit costs for
Please help me with this, everything is undone, please check and fix/add. Thank you very much!
Trico Company set the following standard unit costs for its single product.
| Direct materials (30 Ibs. @ $4.80 per Ib.) | $ | 144.00 |
| Direct labor (7 hrs. @ $14 per hr.) | 98.00 | |
| Factory overheadvariable (7 hrs. @ $6 per hr.) | 42.00 | |
| Factory overheadfixed (7 hrs. @ $9 per hr.) | 63.00 | |
| Total standard cost | $ | 347.00 |
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 64,000 units per quarter. The following flexible budget information is available.
| Operating Levels | ||||||
| 70% | 80% | 90% | ||||
| Production in units | 44,800 | 51,200 | 57,600 | |||
| Standard direct labor hours | 313,600 | 358,400 | 403,200 | |||
| Budgeted overhead | ||||||
| Fixed factory overhead | $ | 3,225,600 | $ | 3,225,600 | $ | 3,225,600 |
| Variable factory overhead | $ | 1,881,600 | $ | 2,150,400 | $ | 2,419,200 |
During the current quarter, the company operated at 90% of capacity and produced 57,600 units of product; actual direct labor totaled 400,200 hours. Units produced were assigned the following standard costs.
| Direct materials (1,728,000 Ibs. @ $4.80 per Ib.) | $ | 8,294,400 |
| Direct labor (403,200 hrs. @ $14 per hr.) | 5,644,800 | |
| Factory overhead (403,200 hrs. @ $15 per hr.) | 6,048,000 | |
| Total standard cost | $ | 19,987,200 |
Actual costs incurred during the current quarter follow.
| Direct materials (1,715,000 Ibs. @ $6.30 per lb.) | $ | 10,804,500 |
| Direct labor (400,200 hrs. @ $11.00 per hr.) | 4,402,200 | |
| Fixed factory overhead costs | 2,813,800 | |
| Variable factory overhead costs | 2,634,200 | |
| Total actual costs | $ | 20,654,700 |
(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
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(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
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