Trico Company set the following standard unit costs for its single product. Direct materials (26 Ibs 1 answer below »

Trico Company set the following standard unit costs for its single product.

         Direct materials (26 Ibs. @ $4.00 per Ib.) $ 104.00   Direct labor (8 hrs. @ $8.00 per hr.) 64.00   Factory overheadAc€??variable (8 hrs. @ $5.00 per hr.) 40.00   Factory overheadAc€??fixed (8 hrs. @ $7.00 per hr.) 56.00      Total standard cost $ 264.00   

  

The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.

  
   Operating Levels    50% 60% 70%   Production in units 30,000     36,000     42,000       Standard direct labor hours 240,000     288,000     336,000       Budgeted overhead       Fixed factory overhead $ 2,016,000     $ 2,016,000     $ 2,016,000           Variable factory overhead $ 1,200,000     $ 1,440,000     $ 1,680,000    

  

During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 333,000 hours. Units produced were assigned the following standard costs:

  
     Direct materials (1,092,000 Ibs. @ $4.00 per Ib.) $ 4,368,000   Direct labor (336,000 hrs. @ $8.00 per hr.) 2,688,000   Factory overhead (336,000 hrs. @ $12.00 per hr.) 4,032,000      Total standard cost $ 11,088,000   

  
Actual costs incurred during the current quarter follow:

    
     Direct materials (1,087,000 Ibs. @ $4.10) $ 4,456,700   Direct labor (333,000 hrs. @ $7.75) 2,580,750   Fixed factory overhead costs 2,953,019   Variable factory overhead costs 2,764,528      Total actual costs $ 12,754,997   

rev: 01_19_2015_QC_CS-3499

5.

value:
10.00 points Required: 1.

Compute the direct materials cost variance, including its price and quantity variances.(Round actual price to 2 decimal places.)

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