[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.)	$	153.00
Direct labor (8 hrs. @ $14 per hr.)		112.00
Factory overheadvariable (8 hrs. @ $6 per hr.)		48.00
Factory overheadfixed (8 hrs. @ $12 per hr.)		96.00
Total standard cost	$	409.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 52,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		36,400		41,600		46,800
Standard direct labor hours		291,200		332,800		374,400
Budgeted overhead
Fixed factory overhead	$	3,993,600	$	3,993,600	$	3,993,600
Variable factory overhead	$	1,747,200	$	1,996,800	$	2,246,400

During the current quarter, the company operated at 90% of capacity and produced 46,800 units of product; actual direct labor totaled 370,400 hours. Units produced were assigned the following standard costs.

Direct materials (1,404,000 Ibs. @ $5.10 per Ib.)	$	7,160,400
Direct labor (374,400 hrs. @ $14 per hr.)		5,241,600
Factory overhead (374,400 hrs. @ $18 per hr.)		6,739,200
Total standard cost	$	19,141,200

Actual costs incurred during the current quarter follow.

Direct materials (1,385,000 Ibs. @ $6.70 per lb.)	$	9,279,500
Direct labor (370,400 hrs. @ $11.50 per hr.)		4,259,600
Fixed factory overhead costs		3,196,600
Variable factory overhead costs		3,016,800
Total actual costs	$	19,752,500

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 Actual Cost Standard Cost Controllable Variance Actual overhead Budgeted overhead Controllable variance Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance