Trico Company set the following standard unit costs for its single product. $ 150.00 98.00 Direct materials (30 Ibs. $5.00 per Ib.) Direct labor (7 hrs. $14 per hr.) Factory overhead-variable (7 hrs. @ $7 per hr.) Factory overhead-fixed (7 hrs. $9 per hr.) Total standard cost 63.88 $360.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 51,000 units per quarter. The following flexible budget Information is available. Operating Levels 7806 8806 985 35,700 46,980 45,900 249,900 285.600 3 21.388 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $2,570, 400 $2,570,400 $1.749.300 $1.999,200 $2.578.488 $2,249, 100 During the current quarter, the company operated at 90% of capacity and produced 45.900 units of product; actual direct labor totaled 317,300 hours. Units produced were assigned the following standard costs. Direct materials (1,377,eee Ibs. $5.00 per Ib.) Direct labor (321,380 hrs. $14 per hr.) Factory overhead (321,380 hrs. @ $16 per hr.) Total standard cost $6,885,000 4,498,200 5, 140,880 $16,524,000 Actual costs incurred during the current quarter follow. Direct materials (1,358,eee Ibs. @ $7.88 per lb.) Direct labor (317,380 hrs. @ $11.ee per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $19,592.488 3,498,388 2,448.500 2,292,300 $18,823,500 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 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 3. Compute the overhead controllable and volume variances. Controllable Variance Actual overhead Budgeted overhead Controllable variance