4. 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. @ $4.80 per Ib.)	$	144.00
Direct labor (7 hrs. @ $14 per hr.)		98.00
Factory overheadvariable (7 hrs. @ $6 per hr.)		42.00
Factory overheadfixed (7 hrs. @ $9 per hr.)		63.00
Total standard cost	$	347.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 64,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		44,800		51,200		57,600
Standard direct labor hours		313,600		358,400		403,200
Budgeted overhead
Fixed factory overhead	$	3,225,600	$	3,225,600	$	3,225,600
Variable factory overhead	$	1,881,600	$	2,150,400	$	2,419,200

During the current quarter, the company operated at 90% of capacity and produced 57,600 units of product; actual direct labor totaled 400,200 hours. Units produced were assigned the following standard costs.

Direct materials (1,728,000 Ibs. @ $4.80 per Ib.)	$	8,294,400
Direct labor (403,200 hrs. @ $14 per hr.)		5,644,800
Factory overhead (403,200 hrs. @ $15 per hr.)		6,048,000
Total standard cost	$	19,987,200

Actual costs incurred during the current quarter follow.

Direct materials (1,715,000 Ibs. @ $6.30 per lb.)	$	10,804,500
Direct labor (400,200 hrs. @ $11.00 per hr.)		4,402,200
Fixed factory overhead costs		2,813,800
Variable factory overhead costs		2,634,200
Total actual costs	$	20,654,700

Problem 23-4A Computation of materials, labor, and overhead variances LO P2, P3

Required: 1. Compute the direct materials cost variance, including its price and quantity variances.

2. Compute the direct labor cost variance, including its rate and efficiency variances.

3. Compute the overhead controllable and volume variances.