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

Direct materials (30 Ibs. @ $4.40 per Ib.)	$	132.00
Direct labor (6 hrs. @ $14 per hr.)		84.00
Factory overheadvariable (6 hrs. @ $8 per hr.)		48.00
Factory overheadfixed (6 hrs. @ $11 per hr.)		66.00
Total standard cost	$	330.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		42,000		48,000		54,000
Standard direct labor hours		252,000		288,000		324,000
Budgeted overhead
Fixed factory overhead	$	3,168,000	$	3,168,000	$	3,168,000
Variable factory overhead	$	2,016,000	$	2,304,000	$	2,592,000

During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs.

Direct materials (1,620,000 Ibs. @ $4.40 per Ib.)	$	7,128,000
Direct labor (324,000 hrs. @ $14 per hr.)		4,536,000
Factory overhead (324,000 hrs. @ $19 per hr.)		6,156,000
Total standard cost	$	17,820,000

Actual costs incurred during the current quarter follow.

Direct materials (1,339,000 Ibs. @ $6.20 per lb.)	$	8,301,800
Direct labor (265,000 hrs. @ $12.00 per hr.)		3,180,000
Fixed factory overhead costs		2,442,900
Variable factory overhead costs		2,736,900
Total actual costs	$	16,661,600

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
			$0	0			$0
				$0
				0

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			$0
				$0
				0

3. Compute the overhead controllable and volume variances.

Controllable Variance
Actual overhead
Budgeted overhead
Controllable variance