Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.50 per Ib.) Direct labor (7 hrs. @ $14 per hr.) Factory overhead-variable (7 hrs. @ $6 per hr.) Factory overhead-fixed (7 hrs. @ $12 per hr.) Total standard cost $165.00 98.00 42.00 84.00 $389.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 62,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% 43,400 49,600 55,800 303,800 347,200 390,600 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $4,166,400 $4,166,400 $4,166,400 $1,822,800 $2,083,200 $2,343,600 During the current quarter, the company operated at 90% of capacity and produced 55,800 units of product; actual direct labor totaled 386,600 hours. Units produced were assigned the following standard costs. $ 9,207,000 Direct materials (1,674,000 Ibs. @ $5.50 per Ib. ) Direct labor (390,600 hrs. @ $14 per hr.) Factory overhead (390,600 hrs. @ $18 per hr.) Total standard cost 5,468,400 7,030,800 $21,706,200 Actual costs incurred during the current quarter follow. Direct materials (1,658,000 Ibs. @ $7.60 per lb.) Direct labor (386,600 hrs. @ $12.00 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $12,600,800 4,639,200 3,321,400 3,109,400 $23,670, 800 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 AQ AP AQ x SP SQ SP X $ 0 $ 0 Direct materials price variance $ 0 0 Direct materials quantity variance Total direct materials variance 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 $ 0 $ 0 Direct labor rate variance $ 0 Direct labor efficiency variance Total direct labor variance