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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $165.00 98.00 42.00 84.00 $ 389.00 70% 43, 400 303, 800 $ 4,166, 400 $ 1,822, 800 Direct materials (1,674, 000 pounds @ $5.50 per pound) Direct labor (390, 600 hours @ $14 per hour) Overhead (390, 600 hours @ $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,000 pounds @ $7.60 per pound) Direct labor (386, 600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 80% 49,600 347, 200 $ 4,166, 400 $ 2,083, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 9,207,000 5, 468, 400 7,030, 800 $ 21, 706, 200 $ 12, 600, 800 4,639, 200 3,321, 400 3,109,400 $ 23,670, 800 90% 55,800 390, 600 mired: mpute the direct materials variance, including its price and quantity variances. mpute the direct labor variance, including its rate and efficiency variances. -mpute the overhead controllable and volume variances $ 4,166,400 $ 2,343, 600

Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $165.00 98.00 42.00 84.00 $ 389.00 70% 43, 400 303, 800 $ 4,166, 400 $ 1,822, 800 Direct materials (1,674, 000 pounds @ $5.50 per pound) Direct labor (390, 600 hours @ $14 per hour) Overhead (390, 600 hours @ $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,000 pounds @ $7.60 per pound) Direct labor (386, 600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 80% 49,600 347, 200 $ 4,166, 400 $ 2,083, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 9,207,000 5, 468, 400 7,030, 800 $ 21, 706, 200 $ 12, 600, 800 4,639, 200 3,321, 400 3,109,400 $ 23,670, 800 90% 55,800 390, 600 mired: mpute the direct materials variance, including its price and quantity variances. mpute the direct labor variance, including its rate and efficiency variances. -mpute the overhead controllable and volume variances $ 4,166,400 $ 2,343, 600

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 165.00 98.00 42.00 84.00 $ 389.00 70% 43, 400 303, 800 $ 4, 166, 400 $ 1,822, 800 Direct materials (1,674, 000 pounds @ $5.50 per pound) Direct labor (390, 600 hours @ $14 per hour) Overhead (390, 600 hours @ $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,000 pounds @ $7.60 per pound) Direct labor (386, 600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 80% 49, 600 347, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 4,166, 400 $ 4,166,400 $ 2,083, 200 $ 2,343, 600 $ 9,207,000 5,468, 400 7,030, 800 $ 21, 706, 200 90% 55,800 390, 600 $ 12, 600, 800 4,639, 200 3,321, 400 3,109,400 $ 23,670, 800 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.
Transcribed Image Text:Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 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 62,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 165.00 98.00 42.00 84.00 $ 389.00 70% 43, 400 303, 800 $ 4, 166, 400 $ 1,822, 800 Direct materials (1,674, 000 pounds @ $5.50 per pound) Direct labor (390, 600 hours @ $14 per hour) Overhead (390, 600 hours @ $18 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct materials (1,658,000 pounds @ $7.60 per pound) Direct labor (386, 600 hours @ $12.00 per hour) Fixed overhead Variable overhead Actual cost 80% 49, 600 347, 200 During the current quarter, the company operated at 90% of capacity and produced 55,800 units; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 4,166, 400 $ 4,166,400 $ 2,083, 200 $ 2,343, 600 $ 9,207,000 5,468, 400 7,030, 800 $ 21, 706, 200 90% 55,800 390, 600 $ 12, 600, 800 4,639, 200 3,321, 400 3,109,400 $ 23,670, 800 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.
Req 3 Controllable Variance Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Req 1 Actual quantity Req 2 Actual Cost X Req 3 Volume Variance Actual price 0 $ Actual quantity 0 0 X Standard price $ 이 Standard quantity Standard Cost X Standard price
Transcribed Image Text:Req 3 Controllable Variance Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) Req 1 Actual quantity Req 2 Actual Cost X Req 3 Volume Variance Actual price 0 $ Actual quantity 0 0 X Standard price $ 이 Standard quantity Standard Cost X Standard price
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