Trico Company set the following standard unit costs for its single product.

Direct materials (30 Ibs. @ $3 per Ib.)	$	90.00
Direct labor (6 hrs. @ $6 per hr.)		36.00
Factory overheadvariable (6 hrs. @ $4 per hr.)		24.00
Factory overheadfixed (6 hrs. @ $5 per hr.)		30.00
Total standard cost	$	180.00

The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 50,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		50%		60%		70%
Production in units		25,000		30,000		35,000
Standard direct labor hours		150,000		180,000		210,000
Budgeted overhead
Fixed factory overhead	$	900,000	$	900,000	$	900,000
Variable factory overhead	$	600,000	$	720,000	$	840,000

During the current quarter, the company operated at 70% of capacity and produced 35,000 units of product; actual direct labor totaled 203,000 hours. Units produced were assigned the following standard costs:

Direct materials (1,050,000 Ibs. @ $3 per Ib.)	$	3,150,000
Direct labor (210,000 hrs. @ $6 per hr.)		1,260,000
Factory overhead (210,000 hrs. @ $9 per hr.)		1,890,000
Total standard cost	$	6,300,000

Actual costs incurred during the current quarter follow:

Direct materials (1,045,000 Ibs. @ $3.10 per lb.)	$	3,239,500
Direct labor (203,000 hrs. @ $5.75 per hr.)		1,167,250
Fixed factory overhead costs		1,800,189
Variable factory overhead costs		1,685,283
Total actual costs	$	7,892,222

Required 1. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost Standard Cost