c ency Prepare a detailed over Rate, $7.6250 $8.500 U items of owerhead Trico Company set the following standard unit costs for its single product. $120 Problem 8-4A Computation of materials, labor and overhead variances P2 P3 Direct materials (30 lbs. 54 per lb) .... Direct laborishs. $14 per he)... Factory overhead-variable 15 hrs. 58 per hr.) Factory overhead-fwed/5 hrs. $10 per hr.) Total standard cost $280 80% of the productive ca The predetermined overhead rate is based on a planned operating volume of 80% of the ity of 60.000 units per quarter. The following flexible budget information is available. Operating Levels 80% 70% 90% 42,000 48.000 240,000 54,000 270,000 210,000 Production in units... Standard direct labor hours..... Budgeted overhead Fixed factory overhead ....... Variable factory overhead $2,400,000 $1,680,000 $2.400,000 $1.920,000 $2,400,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of actual direct labor totaled 265.000 hours. Units produced were assigned the following standard co Direct materials (1.620,000 lbs @ $4 per lb).... Direct labor (270,000 hrs. $14 per hr... Factory overhead (270.000 hrs. $18 per hr.)... Total Standard cost $ 6,480,000 3.780,000 4.860.000 $15,120,000 * Actual costs incurred during the current quarter follow. Direct materials (1,615,000 lbs. $4.10 per Ib.) .... Direct labor (265,000 hrs. $13.75 per hr.).... Fixed factory overhead costs .... Variable factory overhead costs ....... Total actual costs. $ 6,621,500 3,643,750 2,350,000 2,200,000 $14,815,250 Check (1) Materials variances. Price: $161.500 u: Quantity, $20,000 F (2) Labor variances Rate $66,250 F, Efficiency, $70,000F Required 1. Compute the direct materials cost variance, including its price and quantity variances 2. Compute the direct labor cost variance, including its rate and efficiency variances 3. Compute the overhead controllable and volume variances