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Trico Company set the following standard unit costs for its single product. Direct materials (26 Ibs. @ $4 per Ib.) $ 104.00 Direct labor (8

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

Direct materials (26 Ibs. @ $4 per Ib.) $ 104.00
Direct labor (8 hrs. @ $8 per hr.) 64.00
Factory overheadvariable (8 hrs. @ $5 per hr.) 40.00
Factory overheadfixed (8 hrs. @ $7 per hr.) 56.00
Total standard cost $ 264.00

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

Operating Levels
50% 60% 70%
Production in units 30,000 36,000 42,000
Standard direct labor hours 240,000 288,000 336,000
Budgeted overhead
Fixed factory overhead $ 2,016,000 $ 2,016,000 $ 2,016,000
Variable factory overhead $ 1,200,000 $ 1,440,000 $ 1,680,000

During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 331,000 hours. Units produced were assigned the following standard costs:

Direct materials (1,092,000 Ibs. @ $4 per Ib.) $ 4,368,000
Direct labor (336,000 hrs. @ $8 per hr.) 2,688,000
Factory overhead (336,000 hrs. @ $12 per hr.) 4,032,000
Total standard cost $ 11,088,000

Actual costs incurred during the current quarter follow:

Direct materials (1,087,000 Ibs. @ $4.10 per lb.) $ 4,456,700
Direct labor (331,000 hrs. @ $7.75 per hr.) 2,565,250
Fixed factory overhead costs 2,935,283
Variable factory overhead costs 2,747,925
Total actual costs $ 12,705,158
Required:
1.

Compute the direct materials cost variance, including its price and quantity variances.

Answer is not complete

Actual Cost 0 0 Standard Cost
$0 0 $0
$0
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