Accounting homework help?

Posted on 2014-04-11 11:53:00 in Accounting by BOBBY

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





Direct materials (27 Ibs. @ $5 per Ib.) $ 135.00

Direct labor (10 hrs. @ $10 per hr.) 100.00

Factory overhead — variable (10 hrs. @ $6 per hr.) 60.00

Factory overhead — fixed (10 hrs. @ $9 per hr.) 90.00



Total standard cost $ 385.00







The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 80,000 units per quarter. The following flexible budget information is available.



Operating Levels



60% 70% 80%

Production in units 48,000 56,000 64,000

Standard direct labor hours 480,000 560,000 640,000

Budgeted overhead

Fixed factory overhead $ 5,040,000 $ 5,040,000 $ 5,040,000

Variable factory overhead $ 2,880,000 $ 3,360,000 $ 3,840,000





During the current quarter, the company operated at 80% of capacity and produced 64,000 units of product; actual direct labor totaled 636,000 hours. Units produced were assigned the following standard costs:





Direct materials (1,728,000 Ibs. @ $5 per Ib.) $ 8,640,000

Direct labor (640,000 hrs. @ $10 per hr.) 6,400,000

Factory overhead (640,000 hrs. @ $15 per hr.) 9,600,000



Total standard cost $ 24,640,000

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