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

Direct materials (30 Ibs. @ $5.00 per Ib.)	$	150.00
Direct labor (7 hrs. @ $14 per hr.)		98.00
Factory overheadvariable (7 hrs. @ $7 per hr.)		49.00
Factory overheadfixed (7 hrs. @ $9 per hr.)		63.00
Total standard cost	$	360.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 61,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		42,700		48,800		54,900
Standard direct labor hours		298,900		341,600		384,300
Budgeted overhead
Fixed factory overhead	$	3,074,400	$	3,074,400	$	3,074,400
Variable factory overhead	$	2,092,300	$	2,391,200	$	2,690,100

During the current quarter, the company operated at 90% of capacity and produced 54,900 units of product; actual direct labor totaled 316,300 hours. Units produced were assigned the following standard costs.

Direct materials (1,647,000 Ibs. @ $5.00 per Ib.)	$	8,235,000
Direct labor (384,300 hrs. @ $14 per hr.)		5,380,200
Factory overhead (384,300 hrs. @ $16 per hr.)		6,148,800
Total standard cost	$	19,764,000

Actual costs incurred during the current quarter follow.

Direct materials (1,364,000 Ibs. @ $7.80 per lb.)	$	10,639,200
Direct labor (316,300 hrs. @ $11.10 per hr.)		3,510,930
Fixed factory overhead costs		2,348,400
Variable factory overhead costs		2,742,200
Total actual costs	$	19,240,730

Problem 23-4A Computation of materials, labor, and overhead variances LO P2, P3

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