Question

Trico Company set the followingstandard unit costs for its single product.

Direct materials (27Ibs. @ $4 per Ib.)	$	108.00
Direct labor (8 hrs.@ $8 per hr.)		64.00
Factoryoverhead—variable (8 hrs. @ $5 per hr.)		40.00
Factoryoverhead—fixed (8 hrs. @ $7 per hr.)		56.00
Total standardcost	$	268.00

The predetermined overhead rate is based on a planned operatingvolume of 50% of the productive capacity of 60,000 units perquarter. The following flexible budget information isavailable.

	Operating Levels
		40%		50%		60%
Production inunits		24,000		30,000		36,000
Standard directlabor hours		192,000		240,000		288,000
Budgetedoverhead
Fixed factory overhead	$	1,680,000	$	1,680,000	$	1,680,000
Variable factory overhead	$	960,000	$	1,200,000	$	1,440,000

During the current quarter, the company operated at 60% ofcapacity and produced 36,000 units of product; actual direct labortotaled 285,000 hours. Units produced were assigned the followingstandard costs:

Direct materials(972,000 Ibs. @ $4 per Ib.)	$	3,888,000
Direct labor(288,000 hrs. @ $8 per hr.)		2,304,000
Factory overhead(288,000 hrs. @ $12 per hr.)		3,456,000
Total standardcost	$	9,648,000

Actual costs incurred during thecurrent quarter follow:

Directmaterials (967,000 Ibs. @ $4.10 per lb.)

$

3,964,700

Directlabor (285,000 hrs. @ $7.75 per hr.)

2,208,750

Fixed factoryoverhead costs

2,527,358

Variable factoryoverhead costs

2,366,038

Total actualcosts

$

11,066,846

Required:

1.

Compute the direct materials cost variance, including its priceand quantity variances.

2.

Compute the direct labor variance, including its rate andefficiency variances.

3.	Compute the overhead controllable and volume variances.