[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. @ $3 per Ib.) $ 90.00 Direct labor (6 hrs. @ $6 per hr.) 36.00 Factory overheadvariable (6 hrs. @ $4 per hr.) 24.00 Factory overheadfixed (6 hrs. @ $5 per hr.) 30.00 Total standard cost $ 180.00 The predetermined overhead rate is based on a planned operating volume of 70% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available. Operating Levels 60% 70% 80% Production in units 30,000 35,000 40,000 Standard direct labor hours 180,000 210,000 240,000 Budgeted overhead Fixed factory overhead $ 1,050,000 $ 1,050,000 $ 1,050,000 Variable factory overhead $ 720,000 $ 840,000 $ 960,000 During the current quarter, the company operated at 80% of capacity and produced 40,000 units of product; actual direct labor totaled 235,000 hours. Units produced were assigned the following standard costs: Direct materials (1,200,000 Ibs. @ $3 per Ib.) $ 3,600,000 Direct labor (240,000 hrs. @ $6 per hr.) 1,440,000 Factory overhead (240,000 hrs. @ $9 per hr.) 2,160,000 Total standard cost $ 7,200,000 Actual costs incurred during the current quarter follow: Direct materials (1,195,000 Ibs. @ $3.10 per lb.) $ 3,704,500 Direct labor (235,000 hrs. @ $5.75 per hr.) 1,351,250 Fixed factory overhead costs 2,083,962 Variable factory overhead costs 1,950,943 Total actual costs $ 9,090,655

Required 1. Compute the direct materials cost variance, including its price and quantity variances Actual Cost Standard Cost