Required information

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. @ $5.10 per Ib.)	$	153.00
Direct labor (6 hrs. @ $15 per hr.)		90.00
Factory overheadvariable (6 hrs. @ $7 per hr.)		42.00
Factory overheadfixed (6 hrs. @ $11 per hr.)		66.00
Total standard cost	$	351.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 56,000 units per quarter. The following flexible budget information is available.

	Operating Levels
		70%		80%		90%
Production in units		39,200		44,800		50,400
Standard direct labor hours		235,200		268,800		302,400
Budgeted overhead
Fixed factory overhead	$	2,956,800	$	2,956,800	$	2,956,800
Variable factory overhead	$	1,646,400	$	1,881,600	$	2,116,800

During the current quarter, the company operated at 90% of capacity and produced 50,400 units of product; actual direct labor totaled 299,400 hours. Units produced were assigned the following standard costs.

Direct materials (1,512,000 Ibs. @ $5.10 per Ib.)	$	7,711,200
Direct labor (302,400 hrs. @ $15 per hr.)		4,536,000
Factory overhead (302,400 hrs. @ $18 per hr.)		5,443,200
Total standard cost	$	17,690,400

Actual costs incurred during the current quarter follow.

Direct materials (1,499,000 Ibs. @ $6.30 per lb.)	$	9,443,700
Direct labor (299,400 hrs. @ $12.50 per hr.)		3,742,500
Fixed factory overhead costs		2,604,700
Variable factory overhead costs		2,438,500
Total actual costs	$	18,229,400

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.