Question: This is a practice problem with 4 + images for all the steps. Please explain this to me , when I was in class it
This is a practice problem with images for all the steps. Please explain this to me when I was in class it made no sense how to do anything.Required information
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Trini Company set the following standard costs per unit for its single product
Direct materials pounds @ $ per pound$ Direct labor hours @ $ per hourVariable overhead hours @ $ per hourFixed overhead hours @ $ per hourStandard cost per unit$
Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of of the companys capacity of units per quarter. The following additional information is available.
Operating LevelsProduction in unitsStandard direct labor hours DLH per unitBudgeted overhead flexible budgetFixed overhead$ $ $ Variable overhead$ $ $
During the current quarter, the company operated at of capacity and produced units; actual direct labor totaled hours. Units produced were assigned the following standard costs.
Direct materials pounds @ $ per pound$ Direct labor hours @ $ per hourOverhead hours @ $ per hourStandard budgeted cost$
Actual costs incurred during the current quarter follow.
Direct materials pounds @ $ per pound$ Direct labor hours @ $ per hourFixed overheadVariable overheadActual cost$
Required:
Compute the direct materials variance, including its price and quantity variances.
Compute the direct labor variance, including its rate and efficiency variances.
Compute the overhead controllable and volume variances.
Part : Required:
a Compute the variable overhead spending and efficiency variances.
b Compute the fixed overhead spending and volume variances.
c Compute the overhead controllable variance.
Compute the variable overhead spending and efficiency variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "cost per unit" and "rate per hour" answers to decimal places.
Compute the fixed overhead spending and volume variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "cost per unit" and "rate per hour" answers to decimal places.
Compute the overhead controllable variance.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
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