Trini Company set the following standard costs per unit for its single product. Direct materials (30 lbs. @ $4 per lb.) Direct labor (5 hrs. $14 per hr.) $120 70 Variable overhead (5 hrs. $8 per hr.) 40 Fixed overhead (5 hrs. Standard cost per unit $10 per hr.) 50 $280 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the Page 889 company's capacity of 60,000 units per quarter. The following additional information is available. Capacity Level 70% 80% 90% Production (in units) 42,000 units Standard direct labor hours (5 DLH/unit) 210,000 hrs 48,000 units 240,000 hrs 54,000 units 270,000 hrs Budgeted overhead (flexible budget) Fixed overhead Variable overhead $2,400,000 $1,680,000 $2,400,000 $1,920,000 $2,400,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1.620,000 lbs. $4 per lb.) $ 6,480,000 Direct labor (270,000 hrs. @$14 per hr.) Overhead (270,000 hrs. Standard (budgeted) cost $18 per hr.) 3,780,000 4,860,000 $15,120,000 Actual costs incurred during the current quarter follow. Direct materials (1,615,000 lbs. $4.10 per lb.) Direct labor (265,000 hrs. @ $13.75 per hr.) Fixed overhead Variable overhead Actual cost $ 6,621,500 3,643,750 2,350,000. 2,200,000 $14,815,250 Required 1. Compute the direct materials variance, including its price and quantity variances. 2. Compute the direct labor variance, including its rate and efficiency variances.