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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound). Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 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" the company's capacity of 51,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Operating Levels Actual costs incurred during the current quarter follow. Direct materials (1,358,000 pounds @ $7.80 per pound) Direct labor (317,300 hours @ $11.00 per hour) Fixed overhead Variable overhead Actual cost 80% 40,800 285,600 $ 2,570,400 $2,570,400 $ 2,570,400 $ 1,749,300 $ 1,999,200 $ 2,249,100 During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. 90% 45,900 321,300 $6,885,000 4,498,200 5,140,800 $ 16,524,000 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500

Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound). Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 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" the company's capacity of 51,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Operating Levels Actual costs incurred during the current quarter follow. Direct materials (1,358,000 pounds @ $7.80 per pound) Direct labor (317,300 hours @ $11.00 per hour) Fixed overhead Variable overhead Actual cost 80% 40,800 285,600 $ 2,570,400 $2,570,400 $ 2,570,400 $ 1,749,300 $ 1,999,200 $ 2,249,100 During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. 90% 45,900 321,300 $6,885,000 4,498,200 5,140,800 $ 16,524,000 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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M Question 6 - Ch 23: HOME ation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation. Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% the company's capacity of 51,000 units per quarter. The following additional information is available. Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Variable overhead Actual cost Saved 80 F3 Actual costs incurred during the current quarter follow. Direct materials (1,358,000 pounds @ $7.80 per pound) Direct labor (317,300 hours @ $11.00 per hour) Fixed overhead 000 000 F4 A F5 $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 $ 2,570,400 $ 1,749,300 During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. < Prev Operating Levels 80% 40,800 285,600 M $ 2,570,400 $ 1,999, 200 F6 $6,885,000 4,498, 200 5,140,800 $ 16,524,000 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500 6 of 6 # MacBook Air 90% 45,900 321,300 $ 2,570,400 $ 2,249,100 Next > F7 DII F8
Transcribed Image Text:M Question 6 - Ch 23: HOME ation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation. Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% the company's capacity of 51,000 units per quarter. The following additional information is available. Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Variable overhead Actual cost Saved 80 F3 Actual costs incurred during the current quarter follow. Direct materials (1,358,000 pounds @ $7.80 per pound) Direct labor (317,300 hours @ $11.00 per hour) Fixed overhead 000 000 F4 A F5 $ 150.00 98.00 49.00 63.00 $360.00 70% 35,700 249,900 $ 2,570,400 $ 1,749,300 During the current quarter, the company operated at 90% of capacity and produced 45,900 units; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. < Prev Operating Levels 80% 40,800 285,600 M $ 2,570,400 $ 1,999, 200 F6 $6,885,000 4,498, 200 5,140,800 $ 16,524,000 $ 10,592,400 3,490,300 2,448,500 2,292,300 $ 18,823,500 6 of 6 # MacBook Air 90% 45,900 321,300 $ 2,570,400 $ 2,249,100 Next > F7 DII F8
Required information 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Controllable Variance Req 3 Volume Variance Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost $ 0 $ 0 of 0 <Roq 1 < Prev 6 of 6 MacBook Air $ Req 2 > Next 0 Standard Cost +
Transcribed Image Text:Required information 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Controllable Variance Req 3 Volume Variance Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. Actual Cost $ 0 $ 0 of 0 <Roq 1 < Prev 6 of 6 MacBook Air $ Req 2 > Next 0 Standard Cost +
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