Required information Use the following information for the Problems below. [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. @ $4.40 per Ib.) Direct labor (6 hrs. $14 per hr.) Factory overhead-variable (6 hrs. @ $9 per hr.) Factory overhead-fixed (6 hrs. @ $12 per hr.) Total standard cost $132.00 84.00 54.00 72.00 $342.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 55,000 units per quarter. The following flexible budget information is available. Operating Levels 708 808 906 38,500 44,000 49,500 231,000 264,000 297,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,168,000 $3,168,000 $3,168,000 $2,079,000 $2,376,000 $2,673,000 During the current quarter, the company operated at 90% of capacity and produced 49,500 units of product; actual direct labor totaled 292,000 hours. Units produced were assigned the following standard costs. Direct materials (1,485,000 lbs. *.40 per $4.40 per Ib.) Direct labor (297,000 hrs. @ $14 per hr.) Factory overhead (297,000 hrs. @ $21 per hr.) Total standard cost $ 6,534,000 4,158,000 6,237,000 $16,929,000 During the current quarter, the company operated at 90% of capacity and produced 49,500 units of product; actual direct labor totaled 292,000 hours. Units produced were assigned the following standard costs. Direct materials (1,485,000 Ibs. $4.40 per Ib.) Direct labor (297,000 hrs. @ $14 per hr.) Factory overhead (297,000 hrs. @ $21 per hr.) Total standard cost $ 6,534,000 4,158,000 6,237,000 $16,929,000 Actual costs incurred during the current quarter follow. Direct materials (1,474,000 lbs. $7.40 per lb.) Direct labor (292,000 hrs. $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $10,907,600 3,650,000 3,014,700 2,822,300 $20,394,600 Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3 Required: 1. Compute the direct materials cost variance, including its price and quantity variances. AQ - Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost Required: 1. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost $ 0 2. Compute the direct labor cost variance, including its rate and efficiency variances AH - Actual Hours SH - Standard Hours AR = Actual Rate SR = Standard Rate 2. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost $ 0 3. Compute the overhead controllable and volume variances