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Student Name:
Class:
Units Cost Total
1,615,000 $4.10 $6,621,500
1,620,000 $4.00 6,480,000
$141,500 U
Correct! Yes!
Units Price Total
1,615,000 $4.10 $6,621,500
1,615,000 $4.00 6,460,000
$161,500 U
Correct! Yes!
1,615,000 $4.00 $6,460,000
1,620,000 $4.00 6,480,000
$20,000 F
Correct! Yes!
$161,500 U
$20,000 F
$141,500 U
Correct! Yes!
Hours Cost Total
265,000 $13.75 $3,643,750
270,000 $14.00 3,780,000
$136,250 F
Correct! Yes!
Hours Rate Total
265,000 $13.75 $3,643,750
265,000 $14.00 3,710,000
$66,250 F
Correct! Yes!
265,000 $14.00 $3,710,000
270,000 $14.00 3,780,000
$70,000 F
$70,000 F
$136,250 F
Correct! Yes!
Actual quantity at standard price
Instructor
Variances
TRICO COMPANY
Problem 23-01A
McGraw-Hill/Irwin
Part 1 Direct Materials Variances:
Actual units at actual cost
Standard units at standard cost
Direct material cost variance
Direct materials price and quantity variances:
Actual quantity at actual price
Variance
Direct labor rate and efficiency variances:
Price variance
Actual quantity at standard price
Standard quantity at standard price
Quantity variance
Part 2 Direct Labor Variances:
Total materials variance
Efficiency variance
Efficiency variance
Total labor variance
Direct labor cost variances:
Direct materials cost variances:
Actual hours at actual rate
Actual hours at standard rate
Rate variance
Actual hours at standard rate
Standard hours at standard rate
Price variance
Quantity variance
Actual units at actual cost
Standard units at standard cost
Student Name:
Class:
Instructor
Problem 23-01A
McGraw-Hill/Irwin
4,550,000$
4,560,000
10,000$ F
Correct! Yes!
2,400,000$
2,700,000
300,000$ F
Correct! Yes!
Budgeted fixed overhead (70% capacity)
Fixed overhead cost applied
Fixed overhead volume variance
Fixed overhead volume variance
Actual overhead
Part 3 Overhead Variances:
Applied overhead (90% capacity)
Controllable variance
Controllable variance
Pounds Hours Cost Total
30 4.00$ 120$
514.00$ 70
58.00$ 40
510.00$ 50
280$
Operating Levels
70% 80% 90%
42,000 48,000 54,000
210,000 240,000 270,000
2,400,000$ 2,400,000$ 2,400,000$
1,680,000$ 1,920,000$ 2,160,000$
Pounds Hours Cost Total
1,620,000 4.00$ 6,480,000$
270,000 14.00$ 3,780,000
270,000 18.00$ 4,860,000
15,120,000$
Given Data P23-01A:
Standard Unit Costs
TRICO COMPANY
Total standard cost
Factory overhead - fixed
Factory overhead - variable
Direct labor
Direct materials
Operating volume as percentage
Production in units
Standard direct labor hours
Budgeted overhead
Fixed factory overhead
Variable factory overhead
Direct material
Direct labor
Factory overhead
Total standard cost
Actual costs incurred during quarter:
Student Name:
Class:
Flexible Actual
Budget Results Variances
3,600,000$ 3,648,000$ 48,000$ F
1,170,000 1,185,000 15,000 U
270,000 278,000 8,000 U
72,000 63,000 9,000 F
54,000 53,000 1,000 F
90,000 87,500 2,500 F
126,000 118,500 7,500 F
1,782,000 1,785,000 3,000 U
1,818,000 1,863,000 45,000 F
300,000 300,000 -
150,000 147,500 2,500 F
200,000 210,000 10,000 U
250,000 268,000 18,000 U
Sales
McGraw-Hill/Irwin
Instructor
For Year Ended December 31, 2013
Flexible Budget Performance Report
PHOENIX COMPANY
Problem 23-04A
Utilities
Variable costs:
Direct materials
Direct labor
Machinery repairs
Utilities
Packaging
Shipping
Total variable costs
Contribution margin
Fixed costs:
Depreciation - plant equipment
Plant management salaries
Sales salary
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 23-04A
Total Per unit
3,600,000$ 200.00$
3,648,000 202.67
48,000$ 2.67$
Correct! Correct!
Total Per unit
1,170,000$ 65.00$
1,185,000 65.83
15,000$ 0.83$
Correct! Correct!
more than the budgeted purchase price.
The direct materials variance is unfavorable for two possible reasons.
(1) The quantity of materials used may have been more than the quantity
budgeted, and/or (2) the amount paid for the materials might have been
Budgeted materials
Budgeted sales
(b) direct materials variance.
Part 2: Analyze and interpret both the (a) sales variance and
(a) Analysis of sales variance:
Actual materials used
Direct materials variance
Interpretation:
Actual sales
Sales variance
Interpretation:
(b) Analysis of direct materials variance:
The sales variance is favorable because the actual price was higher
than planned.
3,000,000$
975,000$
225,000
60,000
300,000
195,000
200,000 1,955,000
1,045,000
159,000$
15,000
3,648,000$
1,185,000$
278,000
63,000
300,000
200,500
210,000 2,236,500
132,000
241,000
93,500 466,500
471,000$
36,000$ U
9,000 F
Gross profit
Direct materials
Given Data P23-04A:
For Year Ended December 31, 2013
Fixed Budget Report
PHOENIX COMPANY
Sales
Cost of goods sold:
Direct labor
Machinery repairs (variable cost)
Depreciation - plant equipment
Utilities ($45,000 is variable)
Plant management salaries
Units
Income from operations
Based on production and sales volume
Sales (18,000 units)
Cost of goods sold:
Direct materials
Direct labor
Machinery repairs (variable cost)
For Year Ended December 31, 2013
Statement of Income from Operations
PHOENIX COMPANY
Depreciation - Plant equipment
Utilities (fixed cost is $147,500)
Plant management salaries
Income
General and administrative expenses:
Advertising expense
Salaries
Entertainment expense
Income from operations
Fixed costs
