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

Direct materials (30 Ibs. @ $5.10 per Ib.)	$	153.00
Direct labor (8 hrs. @ $14 per hr.)		112.00
Factory overheadVariable (8 hrs. @ $6 per hr.)		48.00
Factory overheadFixed (8 hrs. @ $12 per hr.)		96.00
Total standard cost	$	409.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 66,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		46,200		52,800		59,400
Standard direct labor hours		369,600		422,400		475,200
Budgeted overhead
Fixed factory overhead	$	5,068,800	$	5,068,800	$	5,068,800
Variable factory overhead	$	2,217,600	$	2,534,400	$	2,851,200

During the current quarter, the company operated at 90% of capacity and produced 59,400 units of product; actual direct labor totaled 369,400 hours. Units produced were assigned the following standard costs.

Direct materials (1,782,000 Ibs. @ $5.10 per Ib.)	$	9,088,200
Direct labor (475,200 hrs. @ $14 per hr.)		6,652,800
Factory overhead (475,200 hrs. @ $18 per hr.)		8,553,600
Total standard cost	$	24,294,600

Actual costs incurred during the current quarter follow.

Direct materials (1,387,000 Ibs. @ $6.70 per lb.)	$	9,292,900
Direct labor (369,400 hrs. @ $11.60 per hr.)		4,285,040
Fixed factory overhead costs		3,196,500
Variable factory overhead costs		3,466,700
Total actual costs	$	20,241,140

Problem 21-4A Computing materials, labor, and overhead variances LO P3, P4

Required: 1. Compute the direct materials cost variance, including its price and quantity variances. 2. Compute the direct labor cost variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances.