[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. @ $5.10 per Ib.) Direct labor (8 hrs. @ $15 per hr.) Factory overhead-variable (8 hrs. @ $6 per hr.) Factory overhead-fixed (8 hrs. @ $9 per hr.) Total standard cost $153.00 120.00 48.00 72.00 $393.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 65,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 45,500 52,000 364,000 416,000 90% 58,500 468,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,744,000 $3,744,000 $3,744,000 $2,184,000 $2,496,000 $2,808,000 During the current quarter, the company operated at 90% of capacity and produced 58,500 units of product; actual direct labor totaled 465,000 hours. Units produced were assigned the following standard costs. Direct materials (1,755,000 Ibs. @ $5.10 per Ib.) Direct labor (468,000 hrs. @ $15 per hr.) Factory overhead (468,000 hrs. @ $15 per hr.) Total standard cost $ 8,950,500 7,020,000 7,020,000 $ 22,990,500 Actual costs incurred during the current quarter follow. Direct materials (1,741,000 Ibs. @ $7.00 per lb.) Direct labor (465,000 hrs. @ $11.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $12,187,000 5,347,500 3,315,800 3,104,200 $23,954,500 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