Required information The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $4.90 per Ib.) Direct labor (4 hrs. $16 per hr.) Factory overhead-variable (4 hrs. $6 per hr.) Factory overhead-fixed (4 hrs. $10 per hr.) Total standard cost $147.00 64.00 24.00 40.00 $275.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 53,000 units per quarter. The following flexible budget information is available erating Levels 80% 42,400 169,600 70% 37,100 148,400 90 Production in units Standard direct labor hours Budgeted overhead 47,700 190,800 Fixed factory overhead Variable factory overhead $1,696,000 $1,696, 000 $1,696, 000 $ 890,400 $1,017,600 $1,144,800 During the current quarter, the company operated at 90% of capacity and produced 47,700 units of product, actual direct labor totaled 185,800 hours. Units produced were assigned the following standard costs. Direct materials (1,431,000 Ibs. $4.90 per Ib.) Direct labor (190,800 hrs. $16 per hr.) Factory overhead (190,800 hrs. $16 per hr.) Total standard cost 7,011,900 3,052,800 3,052,800 $13,117,500 Actual costs incurred during the current quarter follow Direct materials (1,412,000 Ibs. $7.70 per lb.) $10,872,400 Direct labor (185, 800 hrs. * $11.00 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs 2,043,800 1,318,500 1,282,700 $15,517,400 1. Compute the direct materials cost variance, including its price and quantity variances Answer is complete but not entirely correct Actual Cost Standard Cost Actual quantity 1,412,000 Actual price Actual quantity 1,412,000 Standard price Standard quantity 1,272,000 Standard price 7.70 S 4.90 $ 4.90 10,872,400 6,918,800 6,232,800 3,953,600 686,000 Unfavorable 686,000 Unfavorable Unfavorable Direct materials price variance Direct materials quantity variance Total direct materials variance 3,953,600 4639,600 2. Compute the direct labor cost variance, including its rate and efficiency variances Answer is complete but not entirely correct. Standard Cost Actual Cost Actual rate Actual hours Standard rate Standard hours Standard rate Actual hours 185,800 185,800 169,600 $ 16.00 16.00 11.00 2,043,800 2,972,800 2,713,600 929,000 259,200 Direct labor rate variance Direct labor efficiency variance Total direct labor variance Favorable 929,000 259,200 Unfavorable Favorable 3. Compute the overhead controllable and volume variances Answer is complete and correct. Controllable Variance $ 2,601,200 Budgeted overhead S 2,840,800 Actual overhead Controllable variance $ 239,600 Favorable Answer is complete but not entirely correct. Fixed overhead volume variance $ 1,696,000 $ 3,052,800 $ 1,356,800 Favorable Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance