Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P The following information applies to the questions displayed below. Trico Company set the following standard unit costs for its single product Direct materials (26 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) $104.00 64.00 40.00 56.00 Total standard cost $264.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 80,000 units per quarter. The following flexible budget information is available. Operating Levels Production in units Standard direct labor hours Budgeted overhead 80% 64,000 448,000 512,000 576,000 70% 56,000 90% 72,000 Flxed factory overhead Variable factory overhead $3,584,000 $3,584,000 $3,584,000 $2,240,000 $2,560,000 $2,880,000 During the current quarter, the company operated at 90% of capacity and produced 72,000 units of product; actual direct labor totaled 570,000 hours. Units produced were assigned the following standard costs: Direct materials (1,872,000 lbs. @ $4 per Ib.) Direct labor (576,000 hrs.$8 per hr.) Factory overhead (576,000 hrs. o $12 per hr.) $ 7,488,000 4,608,000 6,912,000 Total standard cost $ 19,008,000