Check my w 4 rico Company set the following standard unit costs for its single p
ID: 2552705 • Letter: C
Question
Check my w 4 rico Company set the following standard unit costs for its single product Direct materials (30 Ibs. $4.40 per Ib.) Direct labor (6 hrs. s14 per hr.) Factory overhead-variable (6 hrs. $8 per hr.) Factory overhead-fixed (6 hr $12 per hr. Total standard cost $132.00 84.00 48.00 20 points $336.00 Book The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 69,000 units per quarter. The following flexible budget information is available. Print References 701 48,300 901 Production in units Standard direct labor hours Budgeted overhead 55,200 62,100 1,200 372,600 289 800 33 Pixed factory overhead Variable factory overhead 3,974,400 $3,974,400 $3,974,400 2,310,400 2 649,600 $2,980,800 During the current quarter, the company operated at 90% of capacity and produced 62,100 units of product actual direct labor totaled 291000 hours. Units produced were assigned the following standard costs Direct materials (1,863,000 Ibs. 4.40 ,197,200 Ib. ) Direct labor (372,600 hrs. $14 per hr.P Factory overhead (372,600 hrs. $20 per he.) 7.452,000 Total standard cost s,216,400 20,865,600 Actual costs incurred durina the current auarter followExplanation / Answer
1. Direct Material Actual Cost Flexible Standard Cost AQ AP Actual Cost AQ SP Flexible Cost SQ SP Standard Cost 1466000 7.4 10848400 1466000 4.4 6450400 1863000 4.4 8197200 Price Variance 10848400-6450400 Quantity Variance 6450400-8197200 4398000 -1746800 Unfavorable Favorable U 4398000 Price Variance F -1746800 Quantity Variance U 2651200 Total Direct Material Variance 2. Direct Labor Actual Cost Flexible Standard Cost AH AR Actual Cost AH SR Flexible Cost SH SR Standard Cost 291000 12.6 3666600 291000 14 4074000 372600 14 5216400 Rate Variance 3666600-4074000 Quantity Variance 4074000-5216400 -407400 -1142400 Favorable Favorable U -407400 Price Variance F -1142400 Quantity Variance F -1549800 Total Direct Material Variance 3. Overhead controllable and volume variance Actual Overhead 3014600+3272200 6286800 Budgeted Overhead 90% utilization 3974400+2980800 6955200 Controllable Variance -668400 Favorable Budgeted Fixed overhead 3974400 Fixed Overhead Applied 3014600 fixed overhead volume variance 959800 Favorable