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

Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company’s capacity of 60,000 units per quarter. The following additional information is available.

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.

Actual costs incurred during the current quarter follow.

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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Direct materials (30 lbs. @ $4 per Ib.) Direct labor (5 hrs. @ $14 per hr.). Variable overhead (5 hrs. @ $8 per hr.) Fixed overhead (5 hrs. @ $10 per hr.). Standard cost per unit .... $120 ...... 70 40 ..... 50 ... .. $280