Problem 23-4A Computing materials, labor, and overhead variances P3 P4 Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. @ $4 per lb.) $120 Direct labor (5 hrs. $14 per hr.) 70 Factory overhead-Variable (5 hrs. Factory overhead-Fixed (5 hrs. $10 per hr.) Total standard cost $8 per hr.) 40 50 $280 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 Page 905 70% 80% 90% Production in units Standard direct labor hours 42.000 210,000 48,000 240,000 $4,000 270,000 Budgeted overhead Fixed factory overhead- $2400,000 $2,400,000 $2,400.000 Variable factory overhead $1.680,000 $1,920,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs.