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 (26 lbs. @ $5 per lb.) Direct labor (10 hrs. @ $10 per hr.) Factory overhead-variable (10 hrs. @ $6 per hr.) Factory overhead-fixed (10 hrs. @ $9 per hr.) $ 130.00 100.00 60.00 90.00 Total standard cost $380.00 The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available. Operating Levels 60% 30,000 300,000 70% 35,000 350,000 80% 40,000 400,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $ 3,150,000 $ 1,800,000 $3,150,000 $3,150,000 $2,100,000 $2,400,000 During the current quarter, the company operated at 80% of capacity and produced 40,000 units of product; actual direct labor totaled 395,000 hours. Units produced were assigned the following standard costs: Direct materials (1,040,000 lbs. @ $5 per Ib.) Direct labor (400,000 hrs. @ $10 per hr.) Factory overhead (400,000 hrs. @ $15 per hr.) $ 5,200,000 4,000,000 6,000,000 Total standard cost $ 15,200,000 Actual costs incurred during the current quarter follow: $ Direct materials (1,035,000 lbs. @ $5.10 per Ib.) Direct labor (395,000 hrs. @ $9.75 per hr.) Fixed factory overhead costs Variable factory overhead costs 5,278,500 3,851,250 3,502,830 3,279,245 Total actual costs $ 15,911,825 Problem 21-4A Part 1 Required: 1. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost Standard Cost Problem 21-4A Part 2 2. Compute the direct labor variance, including its rate and efficiency variances. Actual Cost Standard Cost