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Need help with the controllable variance, and fixed overhead volume variance. Trico Company set the following standard unit costs for its single product. Direct materials

Need help with the controllable variance, and fixed overhead volume variance.

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

Direct materials (30 Ibs. @ $4.40 per Ib.) $ 132.00
Direct labor (6 hrs. @ $14 per hr.) 84.00
Factory overheadvariable (6 hrs. @ $9 per hr.) 54.00
Factory overheadfixed (6 hrs. @ $12 per hr.) 72.00
Total standard cost $ 342.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 55,000 units per quarter. The following flexible budget information is available.

Operating Levels
70% 80% 90%
Production in units 38,500 44,000 49,500
Standard direct labor hours 231,000 264,000 297,000
Budgeted overhead
Fixed factory overhead $ 3,168,000 $ 3,168,000 $ 3,168,000
Variable factory overhead $ 2,079,000 $ 2,376,000 $ 2,673,000

During the current quarter, the company operated at 90% of capacity and produced 49,500 units of product; actual direct labor totaled 292,000 hours. Units produced were assigned the following standard costs.

Direct materials (1,485,000 Ibs. @ $4.40 per Ib.) $ 6,534,000
Direct labor (297,000 hrs. @ $14 per hr.) 4,158,000
Factory overhead (297,000 hrs. @ $21 per hr.) 6,237,000
Total standard cost $ 16,929,000

Actual costs incurred during the current quarter follow.

Direct materials (1,474,000 Ibs. @ $7.40 per lb.) $ 10,907,600
Direct labor (292,000 hrs. @ $12.50 per hr.) 3,650,000
Fixed factory overhead costs 3,014,700
Variable factory overhead costs 2,822,300
Total actual costs $ 20,394,600

Required: 1. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

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