Use the following information for the Problems below. [The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4 per Ib.) Direct labor (5 hrs. @ $14 per hr.) Factory overhead-variable (5 hrs. @ $8 per hr.) Factory overhead-fixed (5 hrs. @ $10 per hr.) Total standard cost $120.00 70.00 40.00 50.00 $280.00 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. Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead Operating Levels 70% 42,000 210,000 80% 48,000 240,000 90% 54,000 270,000 $2,400,000 $2,400,000 $2,400,000 $1,680,000 $1,920,000 $2,160,000 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 per Ib.) $ 6,480,000 Direct labor (270,000 hrs. @ $14 per hr.) Factory overhead (270,000 hrs. @ $18 per hr.) Total standard cost 3,780,000 4,860,000 $15,120,000 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 per Ib.) $ 6,480,000 Direct labor (270,000 hrs. @ $14 per hr.) Factory overhead (270,000 hrs. @ $18 per hr.) Total standard cost 3,780,000 4,860,000 $15,120,000 Actual costs incurred during the current quarter follow. Direct materials (1,615,000 Ibs. @ $4.10 per lb.) Direct labor (265,000 hrs. @ $13.75 per hr.) Fixed factory overhead costs Variable factory overhead costs Total actual costs $ 6,621,500 3,643,750 2,350,000 2,200,000 $14,815,250 lem 21-4A Computation of materials, labor, and overhead variances LO P2, P3 red: npute the direct materials cost variance, including its price and quantity variances. Actual Quantity Standard Quantity Actual Price Standard Price 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 AP Standard Quantity Actual Price SP = Standard Price Actual Cost Standard Cost 2. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR SR Actual Rate Standard Rate Actual Cost Standard Cost 3. Compute the overhead controllable and volume variances. Controllable Variance Actual overhead Budgeted overhead Controllable variance Fixed overhead volume variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance