Please assist with this question. I need the question broken down in an excel sh
ID: 2480530 • Letter: P
Question
Please assist with this question. I need the question broken down in an excel sheet so I can match my answers correctly. Appreciate the help.
Please break down in Excel sheet so i can understand.
Trico Company set the following standard unit costs for its single product. Direct materials (25 lbs. $4.10 per lb.) Direct labor (5 hrs. @ $8.60 per hr.) Factory overhead-variable (5 hrs. @ $5.40 per hr.) Factory overhead-fixed (5 hrs. @ $7.40 per hr.) $102.50 43.00 27.00 37.00 Total standard cost $209.50 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 62,000 units per quarter. The following flexible budget information is available Operating Levels Production in units Standard direct labor hours Budgeted overhead 70% 43,400 217,000 49,600 248,000 55,800 279,000 Fixed factory overhead Variable factory overhead $1,835,200 $1,835,200 $1,835,200 $1,171,800 $1,339,200 $1,506,600 During the current quarter, the company operated at 70% of capacity and produced 43,400 units of product; actual direct labor totaled 215,100 hours. Units produced were assigned the following standard costs Direct materials (1,085,000 lbs. $4.10 per lb.) Direct labor (217,000 hrs. @ $8.60 per hr.) Factory overhead (217,000 hrs. $12.80 per hr.) $ 4,448,500 1,866,200 2,777,600 Total standard cost $ 9,092,300 Actual costs incurred during the current quarter follow: Direct materials (1,030,000 lbs. @ $4.39 per lb.) $ 4,521,700 1,802,538 1,770,200 1,129,275 Direct labor (215,100 hrs. @ $8.38 per hr.) Fixed factory overhead costs Va riable factory overhead costs Total actual costs $ 9,223,713Explanation / Answer
a) Variable factory overheads Std. Hours Std. Rate Cost Per unit standard 5 5.40 27 Flexible budget at 70 % Std. Hours Std. Rate Cost 43400 units 217000.00 5.40 1171800 Actual at 70 % Actual Hours Actual Rate Cost 43400 units 215100 5.25 1129275 Variable overhead efficiency variance it can be calculated using formula = Std. rate ( Actual hours -standard hours) = 5.40(215100-217000) = 10260 Favourable Variable overhead spending variance can be calculated using formula = actual hours worked (Actual overhead rate - std., overhead rate) =215100 (5.25-5.40) = 32265 Favourable b) Budgeted Fixed Overhead 1835200 Fixed overhead recovery rate 7.40 per hour Standard cost for actual output Std. Hours Std. Rate Cost = 43400 units 217000 7.40 1605800 Actual fixed overhead cost Actual Hours Std. Rate Cost = 43400 units 215100 8.23 1770200 Fixed overhead spending variance = Actual Fixed overhead - budgeted fixed overhead = 1770200 - 1835200 = 65000 Favourable Fixed overhead volume variance = ( Actual units - Budgeted units) x Oveerhead absorption rate = (43400-43400)7.40 = 0 No effect