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Trini Compony set the following standord costs per unit for its single product

Overhead is applied using direct labor hours. The standard overhesd rate is based on a predicted

activity level of $80\%$ of the compony's copocity of $68,000$ units per quarter. The following

additional information is available.

During the current quarter, the compony opersted at $90\%$ of capocity and produced $61,200$ units;

actual direct labor totaled $238,800$ hours. Units produced were assigned the following standard

costs.

Actual costs incurred during the current quarter follow.

Direct materials pounds $$6\mathrm{.}79$ per

pound$)$

Direct labor hours a $$12\mathrm{.}10$ per hour$)$

Fixed overhead

Variable overhead

Actual cost

Problem $21-4$A $($Algo$)$ Computing materlals, labor, and overhead varlances LO P$3,$ P$4$

Required:

Compute the direct materisls voriance, including its price and quantity variances.

Compute the direct labor variance, including its rate and efficiency variances.

Compute the overhead controllable and volume variances.

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Trini Company set the following standard costs per unit for its single product

Direct materials $(30$ pounds @ $$5\mathrm{.}10$ per pound$)$ $ $153\mathrm{.}00$

Direct labor $(4$ hours @ $$15$ per hour$)60\mathrm{.}00$

Variable overhead $(4$ hours @ $$6$ per hour$)24\mathrm{.}00$

Fixed overhead $(4$ hours @ $$10$ per hour$)40\mathrm{.}00$

Standard cost per unit $ $277\mathrm{.}00$

Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of $80\%$ of the company$$s capacity of $68,000$ units per quarter. The following additional information is available.

Operating Levels

$70\%80\%90\%$

Production $($in units$)47,60054,40061,200$

Standard direct labor hours $(4$ DLH$/$unit$)190,400217,600244,800$

Budgeted overhead $($flexible budget$)$

Fixed overhead $ $2,176,000$ $ $2,176,000$ $ $2,176,000$

Variable overhead $ $1,142,400$ $ $1,305,600$ $ $1,468,800$

During the current quarter, the company operated at $90\%$ of capacity and produced $61,200$ units; actual direct labor totaled $238,800$ hours. Units produced were assigned the following standard costs.

Direct materials $(1,836,000$ pounds @ $$5\mathrm{.}10$ per pound$)$ $ $9,363,600$

Direct labor $(244,800$ hours @ $$15$ per hour$)3,672,000$

Overhead $(244,800$ hours @ $$16$ per hour$)3,916,800$

Standard $($budgeted$)$ cost $ $16,952,400$

Actual costs incurred during the current quarter follow.

Direct materials $(1,822,000$ pounds @ $$6\mathrm{.}70$ per pound$)$ $ $12,207,400$

Direct labor $(238,800$ hours @ $$12\mathrm{.}10$ per hour$)2,889,480$

Fixed overhead $1,942,700$

Variable overhead $1,668,700$

Actual cost $ $18,708,280$

Problem $21-4$A $($Algo$)$ Computing materials, labor, and overhead variances LO P$3,$ P$4$

Required:

$1.$ Compute the direct materials variance, including its price and quantity variances.

$2.$ Compute the direct labor variance, including its rate and efficiency variances.

$3.$ Compute the overhead controllable and volume variances.