Use the following information for the Problems below. (Algo)

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[The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product

Direct materials (30 pounds @ $4.80 per pound)	$ 144.00
Direct labor (6 hours @ $14 per hour)	84.00
Variable overhead (6 hours @ $7 per hour)	42.00
Fixed overhead (6 hours @ $9 per hour)	54.00
Standard cost per unit	$ 324.00

Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the companys capacity of 57,000 units per quarter. The following additional information is available.

	Operating Levels
	70%	80%	90%
Production (in units)	39,900	45,600	51,300
Standard direct labor hours (6 DLH/units)	239,400	273,600	307,800
Budgeted overhead (flexible budget)
Fixed overhead	$ 2,462,400	$ 2,462,400	$ 2,462,400
Variable overhead	$ 1,675,800	$ 1,915,200	$ 2,154,600

During the current quarter, the company operated at 90% of capacity and produced 51,300 units; actual direct labor totaled 304,800 hours. Units produced were assigned the following standard costs.

Direct materials (1,539,000 pounds @ $4.80 per pound)	$ 7,387,200
Direct labor (307,800 hours @ $14 per hour)	4,309,200
Overhead (307,800 hours @ $16 per hour)	4,924,800
Standard (budgeted) cost	$ 16,621,200

Actual costs incurred during the current quarter follow.

Direct materials (1,519,000 pounds @ $7.30 per pound)	$ 11,088,700
Direct labor (304,800 hours @ $13.00 per hour)	3,962,400
Fixed overhead	2,337,000
Variable overhead	2,187,800
Actual cost	$ 19,575,900

Problem 23-4A (Algo) Computing materials, labor, and overhead variances LO P3, P4

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. 3. Compute the overhead controllable and volume variances.

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