Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. $4.80 per Ib.) Direct labor (8 hrs. @ $16 per hr.) Factory overhead-variable (8 hrs. $9 per hr.) Factory overhead-fixed (8 hrs.@ $12 per hr.) Total standard cost $144.0e 128.0 72.00 96.00 $440.e0 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 59,000 units per quarter. The following flexible budget information is available Operating Levels 78% 88% 90% Production in units Standard direct labor hours Budgeted overhead 41,30e 330,400 47,200 377,600 53,100 424, 800 Fixed factory overhead Variable factory overhead $4,531,200 $2,973,600 $4,531,200 $3,398,488 $4,531,200 $3,823, During the current quarter, the company operated at 90% of capacity and produced 53,100 units of product, actual direct labor totaled 420,800 hours. Units produced were assigned the following standard costs. Direct materials (1,593,000 Ibs. @ $4.88 per Ib.)7,646,480 Direct labor (424,800 hrs. @ $16 per hr.) Factory overhead (424,89e hrs. $21 per hr.) Total standard cost 6,796,800 8,920,800 $23,364,e00 Actual costs incurred during the current quarter follow. Direct materials (1,582,000 Ibs. @ $5.90 per 1b.) Direct labor (420,800 hrs. $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 9,333,800 5,260,0ee 4, 297,60e 4,023,20e $22,914,600 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 Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance