Trico Company set the following standard unit costs for its single product. $120.00 70.00 40.00 50.00 $280.00 Direct materials (30 Ibs. $4 per Ib.) Direct labor (5 hrs. @ $14 per hr.) Factory overhead-variable (5 hrs. $8 per hr.) Factory overhead-fixed (5 hrs.@ $10 per hr.) Total standard cost The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available Operating Levels 80% 48,000 240,000 90% 70% 42,000 210,000 Production in units Standard direct labor hours Budgeted overhead 54,000 270,000 Fixed factory overhead Variable factory overhead $2,400,000 $2,400,000 $2,40e,000 $1,680,000 $1,920,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product, actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs Direct materials (1,62e,000 Ibs. $4 per Ib.) Direct labor (270,000 hrs. $14 per hr.) Factory overhead (270,000 hrs. $18 per hr.) Total standard cost $ 6,480,000 3,780,0ee 4, 860,000 $15,120,000 Actual costs incurred during the current quarter follow $ 6,621,500 3,643,750 2,350,0ee 2,200,000 $14,815,250 Direct materials (1,615,000 Ibs. $4.10 per 1b.) Direct labor(265,000 hrs. $13.75 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs 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 Answer is not complete Actual Cost Standard Cost SP $0.10 SP AP $ 4.100 AQ 1,615,000x 1,615,000 x 6,621,500 161,500 6,460,000 Direct materials price variance Direct materials quantity variance Total direct materials variance 6,460,000 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 Answer is not complete Actual Cost Standard Cos SHx SR AH AR AH 13.75 265,000 $14.00 3,643,750 S 0 Direct labor rate variance Direct labor efficiency variance Total direct labor variance