21.9

Trico Company set the following standard unit costs for its single product. The predetermIned overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is avallable. During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the followIng standard costs. Actual costs Incurred during the current quarter follow. Requlred: 1. Compute the direct materlals cost varlance, Including Its price and quantity varlances. 2. Compute the direct labor cost varlance, Including its rate and efficlency varlances. 3. Compute the overhead controllable and volume varlances. to two decimal pisces.) answers to twa decimal places.) Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Compute the volume variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)