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. @ $4.00 per Ib.)	$	120.00
Direct labor (7 hrs. @ $14 per hr.)		98.00
Factory overheadVariable (7 hrs. @ $7 per hr.)		49.00
Factory overheadFixed (7 hrs. @ $11 per hr.)		77.00
Total standard cost	$	344.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 63,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		44,100		50,400		56,700
Standard direct labor hours		308,700		352,800		396,900
Budgeted overhead
Fixed factory overhead	$	3,880,800	$	3,880,800	$	3,880,800
Variable factory overhead	$	2,160,900	$	2,469,600	$	2,778,300

During the current quarter, the company operated at 90% of capacity and produced 56,700 units of product; actual direct labor totaled 393,900 hours. Units produced were assigned the following standard costs.

Direct materials (1,701,000 Ibs. @ $4.00 per Ib.)	$	6,804,000
Direct labor (396,900 hrs. @ $14 per hr.)		5,556,600
Factory overhead (396,900 hrs. @ $18 per hr.)		7,144,200
Total standard cost	$	19,504,800

Actual costs incurred during the current quarter follow.

Direct materials (1,686,000 Ibs. @ $5.10 per lb.)	$	8,598,600
Direct labor (393,900 hrs. @ $12.00 per hr.)		4,726,800
Fixed factory overhead costs		3,380,000
Variable factory overhead costs		3,164,200
Total actual costs	$	19,869,600

Problem 23-4A 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.