Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs.55.10 per Ib.) Direct labor (6 hrs. $15 per hr.) Factory overhead-variable (6 hrs. $7 per hr.) Factory overhead-fixed (6 hrs. $11 per hr.) Total standard cost $153.00 90.00 42.00 66.00 $351.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 56,000 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 700 BON 90 39,200 44,800 50,400 235,200 268, 800 302,400 $2,956,800 $2,956,800 $2,956,800 $1,646,400 $1,881,600 $2,116,100 During the current quarter, the company operated at 90% of capacity and produced 50,400 units of product, actual direct labor totaled 299,400 hours. Units produced were assigned the following standard costs. Direct materials (1.512,000 tbs. 35.10 per Ib.) Direct labor (302,400 hrs. $15 per hr.) Factory overhead (302,400 hrs. 318 per hr.) Total standard coat $ 7,711,200 4,536,000 3,643,200 $17.690,400 Actual costs incurred during the current quarter follow During the current quarter, the company operated at 90% of capacity and produced 50,400 units of product; actual direct labor totaled 299,400 hours. Units produced were assigned the following standard costs. Direct materials (1,512,000 lbs. e $5.10 per Ib.) Direct labor (302,400 hrs. . $15 per hr.) Factory overhead (302,400 hrs. $18 per hr.) Total standard cost $ 7,711,200 4,536,000 5,443,200 $17.690,400 Actual costs incurred during the current quarter follow. Direct materials (1,499,000 lbs. $6.30 per lb.) Direct labor (299,400 hrs. $12.50 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costa $ 9,443, 700 3,742,500 2,604,700 2,438,500 $18, 229,400 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 Actual Cost Standard Cost