Problem 21-4B Computation of materials, labor, and overhead variances P2 P3 Kryll Company set the following standard unit costs for its single product. Direct materials (25 lbs.@$4 per lb.). . . .$100 48 Factory overhead-variable (6 hrs.@ $5 per hr) Factory overhead -fixed (6 hrs. @$7 per hr) 30 42 $220 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% Production in units 42.000 48,000 Standard direct labor hours Budgeted overhead 54,000 252000 288.000 324.000 Fxed factory overhead...$2.016.000 $2.016.000 $2.016,000 Variable factory overhead 1,260,000 1.440,000 1.620,000 During the current quarter, the company operated at 70% of capacity and produced 42.000 units of prod- uct: direct labor hours worked were 250,000. Units produced were assigned the following standard costs: Direct materials (1.050,000 Ilbs.@$4 per lb) .$4.200.000 Direct labor (252.000 hrs.@$8 per hc).2.016,000 Factory overhead (252,000 hrs. @$12 per hr)3.024,000 Total standard cost... $9.240,000