Problem 23-1A Computation of materials, labor, and overhead variances LO P2, P3 The following information applies to the questions displayed below nco Company set the following standard unit costs for Its single product. 108.00 Direct materlals (27 lbs. $4.00 per lb) Direct labor (8 hrs. $8.00 per h 64.00 Factory overhead-v (8 hrs. $5.00 per hr. 4000 56.00 Factory overhead fixed (8 hrs a S700 per hry $268.00 Total standard cost The predetermined overhead rate is based on a planned operating volume of 60% of the productve capacity of 70,000 units per quarter The following flexible budget Information ls avallable. Operating Levels Production In 35.000 42,000 49,000 units 336.000 Standard direct labor hours 280.000 392.000 Budgeted overhead $2.352.000 $2.352.000 $2.352.000 Fixed factory overhead Variable factory overhead 1,400,000 1680,000 1960,000 During the current quarter, the company operated at 70% of capacity and produced 49 000 units or product actual direct labor totaled 385,000 hours. Unlts produced were assigned the following stondard costs Direct materials (1. 323,000 lbs. $4.00 per lb) 5.292,000 Direct labor (392,000 hrs, $8.00 per hr) 3136.000 Factory overhead (392,000 hrs. $12.00 per hry 4,704.000 Total standard cost 13.132.000