Trico Company set the following standard unit costs for its single product Direct materials (30 lbs. @ $4.90 per tb.) Direct labor (hes. $16 per hr Factory overhead-variable (4 hrs. 56 per hr.) Factory overhead fixed (4 hrs. $10 per hr.) Total standard cost $147.00 64.00 24.80 40.00 $ 275.00 Sok The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 53,000 units per quarter. The following flexible budget information is available. Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead Operating Levels 70% BOR 90% 37,100 42,400 143,400 47,700 169,600 190,800 51.696,000 $1,696,000 51,696,000 $390,400 $1,817,600 $1,144,300 Saved Help S During the current quarter the company operated at 90% of capacity and produced 47700 units of product, actual direct labor totaled 185,800 hours. Units produced were assigned the following standard costs. Direct materials (1,431,000 lbs. $4.99 per Ib.) Direct Labor (190,800 he's $16 per he:) Factory overhead (190,800 hrs. @ $16 per hr.) Total standard cost $ 7,011,900 3,052,800 3,052,800 $13, 117,500 ook Actual costs incurred during the current quarter follow Direct materials (1,412,000 lbs. $7.70 per lb.) Direct labor (185,800 hrs. 511.00 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $10,872,400 2,143,800 1,318,500 1,282,200 515,517,400 Required information 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 Saved Help Required information Actual Cost Standard Cost BOOK Saved Required information 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 bok Actual Cost Standard Cost Print 3. Compute the overhead controllable and volume variances Controllable Variance Actual overhead Budgeted overhead Controllable variance