Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3 [The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. @ $4 per lb.) Direct labor (8 hrs. @ $8 per hr.) Factory overhead-variable (8 hrs. @ $5 per hr.) Factory overhead-fixed (8 hrs. @ $7 per hr.) $ 120.00 64.00 40.00 56.00 Total standard cost $280.00 The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 70,000 units per quarter. The following flexible budget information is available. Operating Levels 50% 35,000 280,000 60% 42,000 336,000 70% 49,000 392,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $2,352,000 $ 1,400,000 $2,352,000 $1,680,000 $2,352,000 $ 1,960,000 During the current quarter, the company operated at 70% of capacity and produced 49,000 units of product; actual direct labor totaled 389,000 hours. Units produced were assigned the following standard costs: Direct materials (1,470,000 lbs. @ $4 per lb.) Direct labor (392,000 hrs. @ $8 per hr.) Factory overhead (392,000 hrs. @ $12 per hr.) $ 5,880,000 3,136,000 4,704,000 Total standard cost $ 13,720,000 Actual costs incurred during the current quarter follow: Direct materials (1,465,000 lbs. @ $4.10 per lb.) Direct labor (389,000 hrs. @ $7.75 per hr.) Fixed factory overhead costs Variable factory overhead costs 6,006,500 3,014,750 3,449,623 3,229,434 Total actual costs $ 15,700,307 Required: 1. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost Standard Cost $ 0 $ 0 | $ 2. Compute the direct labor variance, including its rate and efficiency variances. Actual Cost Standard Cost 0 $ 0 0