Trint Company set the following standard costs per unit for its single product Direct materials (30...

 

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Trint Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.80 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ 56 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 67,000 units per quarter. The following additional Information is available. Operating Levels sex 53,600 375,200 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (Flexible budget) Fixed overhead Variable overhead $ 144,00 98.00 42.00 63.00 $347.00 Direct materials (1.809,000 pounds $4.80 per pound) Direct labor (422,100 hours @ $14 per hour) Overhead (422,100 hours @ $15 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1.711,000 pounds @ $6.30 per pound) Direct labor (399,200 hours @ $11.20 per hour) Fixed overhead Variable overhead Actual cost 78% 46,900 328,300 $ 3,376,800 $ 1,969,800 $ 3,376,800 $1,176,800 $ 2,251,200 $ 2,532,600 During the current quarter, the company operated at 90% of capacity and produced 60,300 units: actual direct labor 399.200 hours. Units were the costs. $ 8,683,200 5,909,400 6,311,500 $ 20,924,100 90% 60,300 422,100 $ 10,779,300 4,471,040 2,813,700 3,084,100 $ 21,148,140 Required: 1. Compute the direct materials variance, including its price and quantity variances. 2 Compute the direct labor variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances Trint Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.80 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ 56 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 67,000 units per quarter. The following additional Information is available. Operating Levels sex 53,600 375,200 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (Flexible budget) Fixed overhead Variable overhead $ 144,00 98.00 42.00 63.00 $347.00 Direct materials (1.809,000 pounds $4.80 per pound) Direct labor (422,100 hours @ $14 per hour) Overhead (422,100 hours @ $15 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1.711,000 pounds @ $6.30 per pound) Direct labor (399,200 hours @ $11.20 per hour) Fixed overhead Variable overhead Actual cost 78% 46,900 328,300 $ 3,376,800 $ 1,969,800 $ 3,376,800 $1,176,800 $ 2,251,200 $ 2,532,600 During the current quarter, the company operated at 90% of capacity and produced 60,300 units: actual direct labor 399.200 hours. Units were the costs. $ 8,683,200 5,909,400 6,311,500 $ 20,924,100 90% 60,300 422,100 $ 10,779,300 4,471,040 2,813,700 3,084,100 $ 21,148,140 Required: 1. Compute the direct materials variance, including its price and quantity variances. 2 Compute the direct labor variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances

Answer rating: 100% (QA)

A Direct Materials Variance 1 Price Variance Actual Quantity of Direct Materials Used Actual Price Standard Price per Pound Actual Quantity of Direct Materials Used 1711000 pounds Actual Price per Pou... View the full answer