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 (25 lbs.@$4 per lb.) Direct labor (8 hrs.$8 per hr) Factory overhead-variable (8 hrs.@ $5 per hr) Factory overhead-fixed (8 hrs. e$7 per hr.) 100.00 64.00 40.00 56.00 $260.00 Total standard cost 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 Production in units Standard direct labor hours 60% 42,000 280,000 336,000 392,000 50% 35,000 70% 49,000 Flxed factory overhead Variable factory overhead $2,352,000 $2,352,000 $2,352,000 $1,400,000 $1,680,000 $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 385,000 hours. Units produced were assigned the following standard costs Direct materials (1,225,000 lbs.@ $4 per lb.) Direct labor (392,000 hrs.$8 per hr.) Factory overhead (392,000 hrs.@ $12 per hr.) S 4,900,000 3136,000 4704,000 Total standard cost $12,740,000