Trico Company set the following standard unit costs for its single product Direct materials (30 Ibs. @ $4 per Ib.) Direct labor (5 hrs. @ $14 per hr.) Factory overhead_variable (s hrs. @ $8 per hr.) Factory overhead_fixed (5 hrs. @ $10 per hr.) Total standard cost $ 120.00 70.00 49,00 50,00 $ 280.00 The predetermined overhead rate is based on a planned operating volume of 80% of the produc units per quarter. The following flexible budget information is available. Operating Levels 20% 80% 42,800 48,000 210,000 240, eoe 90% 54,009 279,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $2,400,000 $2,400,000 $2,400,000 $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 labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1,620,000 Ibs. @ $4 per Ib.) Direct labor (279,000 hrs. @ $14 per hr.) Factory overhead (270,000 hrs. @ $18 per hr.) Total standard cost $ 6,480,000 3.780,000 4,860, eee $15, 120,000 Actual costs incurred during the current quarter follow. Direct materials (1,615,000 Ibs. @ $4.1e per lb.) Direct labor (265,000 hrs. @ $13.75 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 6,621,500 3,643,758 2.350 epe 2,200 e $14,815,250 Requlred: 1. Compute the direct materials cost variance, including its price and quantity variances Requlred: 1. Compute the direct materials cost varlance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard cost 0 s s 0 S 0 2. Compute the direct labor cost varlance, including its rate and efficiency variances. AH= Actual Hours SH - Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost S 0 $ 10 S 0 0 3. Compute the overhead controllable and volume variances. Controllable variance Actual overhead Budgeted overhead Controllable variance Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance